Installments can be an easier way to be a huge amount, the amounts will be divided into small amounts that have to be paid monthly. Thus, 7% is the simple interest rate for the problem.
The actual price of the car is $6798.
Monthly installments are $168.51.
The down payment for the car is $798.
The duration of installments is 48 months.
Now, let us calculate the total amount that has to be paid for the car.
[tex]\begin{aligned}\rm{Amount}&=798+48 \times 168.51\\&=798+8088\\&=8886\end{aligned}[/tex]
The extra amount that is paid is counted under the interest of the car.
Thus,
[tex]\begin{aligned}\rm{Interest}&=8886-6798\\&=2088\end{aligned}[/tex]
Now, the formula for finding the interest can be formulated below:
[tex]I=\dfrac{prt}{100}[/tex]
Therefore, p=$6798, r=r, time= 48 months that is 4 years, and interest=$2088.
Substitute the values and solve the expression for r.
[tex]2088=\dfrac{6798 \times r \times 4}{100}\\r=7\%[/tex]
Thus, 7% is the simple interest rate.
To know more about simple interest, please refer to the link:
https://brainly.com/question/7279636
