Calculate the annual rate of interest

Reference no: EM133264555

Question

a) A car dealer in Jakarta offers a car for sale by immediate down payment of IDR 200,000 and thereafter monthly installments of IDR 16,200 for 5 years. If the interest rate is 10.5% compounded monthly, what is the current price of the car?

b) If a principal amount of USD 4000 is invested for 10 years, compounded annually, and the final amount at the end of the period is USD 4500, calculate the annual rate of interest.

Reference no: EM133264555

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