Concept explainers
A car dealer sells a new car for $18,000. He also offers to sell the same car for payments of $375 per month for five years. What monthly interest rate is this dealer charging?
To solve this problem you will need to use the formula for the present value A of an annuity consisting of n equal payments of size R with interest rate i per time period:
Replacing i by x, show that
Use Newton’s method to solve this equation.
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Single Variable Calculus
- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning