Ask Question
18 January, 23:40

John bought a used truck for $4,500 he made an agreement with the dealer to put $1,500 down and mae payments of $350 for the next 10 months the extra cost paid by taking this deal is equivalent to what actual yearly rate of interest

+5
Answers (1)
  1. 19 January, 02:57
    0
    Ist amount paid = $1500

    Making $350 for 10 months = 10*350 = $3500

    Total amount paid = 1500 + 3500 = 5000

    So an amount of $5000 was paid to cover the cost of $4500 within the 10 month period.

    I = PRT

    Interest, I = 5000 - 4500 = 500

    Time, t = 10 months = 10/12 = (5/6) year.

    Principal P = 4500

    R = I / (PT)

    R = 500 / (4500*5/6)

    R = (500*6) / (4500*5)

    R = 0.1333 ...

    R ≈ 13.33 % per annum.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “John bought a used truck for $4,500 he made an agreement with the dealer to put $1,500 down and mae payments of $350 for the next 10 months ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers