Jerry N.

asked • 12/17/20

Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing ​$17,475 with 72 monthly payments of ​$299.

The ad for a​ 4-door sedan claims that a monthly payment of ​$299 constitutes​ 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing ​$17,475 with 72 monthly payments of ​$299.


NEW​ 4-DOOR SEDAN!

Zero down​ - 0% financing

​$299 per​ month*

Buy for ​$17,475.

​*4-door sedan,​ 0% down,​ 0% for 72 months


The advertisement is​ false, because for​ 0% financing, the monthly payments should be ​$ _____________​, not ​$299.

​(Round to the nearest cent as​ needed.)

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