Finance Charge/ APR homework question?
Finance Charge/ APR homework question?
I keep getting it wrong, I don't understand what I am doing wrong, so if someone could point it out for me.
Jennifer wants to buy a used car for $4600. Dealer offered a four year add-on interest loan that requires NO down payment at 8% annual interest with an APR of 14.25 %
A. find monthy payment
B. Verify APR
A. this is the equation i set up
4600(1 + .08/12)^48 = pmt ( (1+ .08/12)^48 - 1 / .08/12 )
I'm getting $112.30, but the answer is $126.50
What am I doing wrong?
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