Answer:
2.4%
Step-by-step explanation:
Total amount of payments:
5 years * 12 months/year * $78.40/month =
= $4704.00
Amount of interest paid in 5 years:
$4704 - $4200 = $504
Amount of interest paid in 1 year:
$504/5 = $100.80
Annual percent rate of interest:
$100.80/$4200 * 100% = 2.4%
Answer: 2.4%
