Question

Helen is buying a $12,375 car with a $3000 down payment, followed by 36 monthly payments of $325 each. The down payment is paid immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying

Answer 1

Answer: 15%

Explanation: The annual rate that Helen is paying is 15%, to see the resolution of the exercise, please see the attached file.

Helen initially pays $ 3,000, so the loan is $ 12,375 - $ 3,000 = $ 9,375.