Henry Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments of $34. What actual yearly interest rate did Henry pay?
A. 29.09
B. 14.55
C. 68.75
D. 34.38

Question

Henry Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments of $34. What actual yearly interest rate did Henry pay?
A. 29.09
B. 14.55
C. 68.75
D. 34.38

anonymous · Answer

I did the math 2 times and I got the answer B twice, but when I submitted my test. Answer B was wrong, I've looked all over the internet for help and I can't seem to find the answer. Someone please help me.

redohawk · Answer

i'm thinking D

anonymous · Answer

Can you try to explain to me how you came up with that answer  please @RedoHawk

anonymous · Answer

Down Payment= $20 
10 Payments=10x34, =340 
Total paid=340+20=$360 
Cost price was........$320 
Interest=.................._____40 
The formula for Simple Interest is i=Prt, where 
i=annual interest rate 
P=starting amount 
r= interest rate, as a percent 
t=time, in years 
From i=Prt, 
r=i/Pt 
i=40, P=320, t=10/12 of a year 
r=40/320(10/12) 
r=40/266.67 
r=0.1499981 
r=15% 
@Tayy-Renae1317