Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

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

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.