I am studying for my GRAD test tomorrow and I keep getting the wrong answer :( THIS IS NOT A HOMEWORK QUESTION. Please help me figure it out with detail <3
The price of a set of tires at Tire Mart is $420.00. One payment plan is to make monthly payments of $39.50 for a year. Customers who choose this payment plan pay interest. What percent of the price of the tires is the interest?
The price of a set of tires at Tire Mart is $420.00. One payment plan is to make monthly payments of $39.50 for a year. Customers who choose this payment plan pay interest. What percent of the price of the tires is the interest?
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Recall there are twelve months in the year, so multiply the given monthly rate of 39.50 by 12 to get the yearly cost, $474.
The price of a set of tires is given as $420, but the payment plan using installments is $474. The differential is the interest. 420/474 = 88.6%.
100% - 88.6% = 11.4% interest.
Hope this helps and is correct.
The price of a set of tires is given as $420, but the payment plan using installments is $474. The differential is the interest. 420/474 = 88.6%.
100% - 88.6% = 11.4% interest.
Hope this helps and is correct.