Respuesta :
Answer:
the annual interest rate is 7.583%
Step-by-step explanation:
We are given
Summer has an offer to buy an item with a sticker price of $13,200
so, we have
P=13200
paying $460 a month for 36 months
so, we can find total amount
[tex]A=460\times 36[/tex]
[tex]A=16560[/tex]
Let's assume
annual interest is r
total time =36 months
so, total number of years =3
Since, it is compounded monthly
so, n=12
now, we can use formula
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
now, we can plug values
[tex]16560=13200(1+\frac{r}{12} )^{36}[/tex]
now, we can solve solve for r
[tex](1+\frac{r}{12} )^{36}=\frac{16560}{13200}[/tex]
[tex]r=0.07583[/tex]
So, the annual interest rate is 7.583%
