Find what is the nominal annual interest rate being charged

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Reference no: EM13222346

The local Toyota dealer is offering special financing on its new hybrid cars.The cost of the car is $30,000.The financing is as follows:
cost of the car=$30,000
3 years interest @1%=$900.00
(3(0.01)(30,000)) Total=$30,900
Down payment=$3,000
36 end of month payments=30,900/36=858.33
What is the nominal annual interest rate being charged by the dealer? What is the actual interest rate?

Reference no: EM13222346

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