Question

John bought a TV that had a list price of $800. He agreed to a payment plan of 12 monthly
payments at $80 per month.
a) How much is the finance charge?
b) What is the simple interest rate?

Answer 1

@Don3 @baru @AaronAndyson

Answer 2

Step 1 :
Since it is a monthly payment for 12 months, multiply $80 with 12 and you'll get the total amount that is needed to be paid.
Step 2:
Subtract the list price from the amount that you get in step 1 and you get the finance charge.
Step 3:
The formula of simple interest is I = (P*R*T)/100
Here,
I = the difference between the amount you get in step 1 and the list price
P = $80
T = 12 months
Start solving now.

Answer 3

With this, you can get R, i.e., the simple interest rate.