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. 68.75
C. 34.38
D. 14.55

Answer 1

its
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%

Answer 2

@KaelenDrake did you get what i just did.?

Answer 3

the answer is D.