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

It would be C. 34.38

Answer 2

34*(1-(1+i)^-10)/i = 300

After calculating this, you will find that the yearly interest will be +/- 28 %

I would pick A. 29.09 because this seems to be the closest answer

hope this helps