Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Recently, Glenda Estes was interested in purchasing a Honda Acura. The salesperson indicated that the price of the car was either $27,600 cash or $6,900 at the end of each of 5 years. Compute the effective-interest rate to the nearest percent that Glenda would pay if she chooses to make the five annual payments.

Sagot :

chilljain33

The rate of interest charged to Glenda would be 5.18% upon the payment of her car in five annual installments.

What is a rate of interest?

The percentage of interest charged over the principal amount of loan or advances for a particular period of time, is known as the rate of interest of such loan.

The computation of rate of interest using the formula and given information will be,

[tex]\rm Rate\ of\ Interest= \dfrac{Interest}{Principal\ x\ Time}\ x\ 100\\\\\rm Rate\ of\ Interest= \dfrac{7150}{138000}\ x\ 100\\\\\rm Rate\ of\ Interest= 5.18[/tex]

Hence, the computation of the rate of interest is as aforementioned.

Learn more about rate of interest here:

https://brainly.com/question/13324776

#SPJ1

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.