What is the nominal annual interest rate being charged

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Reference no: EM13222280

A local general motors car dealer is offering special financing on its new hybrid cars. The cost of car is $20,000 and the car loan is only 3% for three years paid monthly as follows:
money of the car=$20,000
3 years interest@3%=$1800
36 monthly payments=21,800/36=$605.56 (21800=20000+1800)
The first payment is due 30 days from the sale.What is the nominal annual interest rate being charged by the dealer?

Reference no: EM13222280

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