Question

I am having trouble figuring out APR using Excel for this one. Anyone know what to do?
A used car with a price of $7,880 can be purchased for no money down by making 60 monthly payments of $185.53. Find (a) the total monthly payments, (b) the total finance charge, and (c) the APR.

Answer 1

solve for "i" in
7880(1+i/12)^60 = 60*185.53

Answer 2

you should get
\[ \left( 1+ \frac{i}{12}\right)^{60} = \frac{60 \cdot 185.53}{7880} \]
take the 1/60 root of both sides (raise both sides to the 1/60 power)
\[ 1+ \frac{i}{12}= \left( \frac{60 \cdot 185.53}{7880}\right)^{\frac{1}{60}}\]

can you finish ?