Melvin Roger bought a new car for a prive of $8,599 putting down $1,000 and financing the remainder with 60 monthly payments at $180.84. What is the APR?

Question

Melvin Roger bought a new car for a prive of $8,599 putting down $1,000 and financing the remainder with 60 monthly payments at $180.84.  What is the APR?

mathmale · Answer

The "remainder" was $7,599.  This was the amount financed.  You need to work backwards from the fact that the monthly payments are $180.84, for 60 months, and that zero will be owed on the loan after those 60 payments.

Do you have access to a list of financial formulas?  You're likely to find the correct one if you have such a list.