You take out a $19,500 car loan at 4.8% APR. (a) What is the monthly or periodic interest rate? (b) Your monthly rate can be expressed as a ratio x : 100. What quantity does the x represent? (c) How much interest is charged in the first month?
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So, \(4.8\% \div 12 = 0.4\% \) per month. (b) If the monthly rate can be expressed as a ratio \(x=100\), then \(x\) represents the percentage form of the monthly interest rate. In this case, \(x = 0.4\). (c) Show more…
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