Question

Business that offer repayment plan for punches are required by law to disclose the interest rate but that doesn’t mean they go out of their way to let you know it is. You have to read all the paperwork. Find the interest rate for the following purchase.To finance a new laptop Emily offered a 3 year payment plan with low monthly in payments $32.90. The cost of the laptop was $884.23 including tax. Round to the decimal point if necessary

Answer 1

`\begin{gathered} t=3\text{ year, but one year has 12 months, hence} \\ t=(3)(12)=36\text{ months} \\ Cost=\text{ \$}884.23 \\ Payment=(\text{ \$32.90})(36)=\text{\$}1184.4 \\ Interest=\text{\$}1184.4-\text{\$}884.23 \\ Interest=\text{\$300}.17 \\ Interest\text{ rate=}\frac{\text{\$300}.17}{\text{\$}884.23} \\ Interest\text{ rate=0.34=34\%} \\ The\text{ interest rate is 34\%} \end{gathered}`