The annual membership fee at the Oak Meadows Golf Club is $3600, payable at the beginning of the year. A member may delay payment of half the annual membership fee for five months if he/she pays a surcharge of $120 with the second $1800 payment. In effect, what annual rate of simple interest is the golf club charging on the $1800 owed?
The answer in the back of my book is 16%. However I keep coming up with 13.33%. Can anyone verify, maybe the book is wrong?
2007-01-24 16:19:43 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
(120*12)/(1800*5) = 0.16
interest of 120 on principal of 180, rescaled from 5 months to 12.
'spartan' below has been practicing head-butts too much.
2007-01-24 16:25:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Book's right. Equation is 5/12 • x • 1800 = 120.
The annual interest has only operated for 5/12 of the year. So
x • 150 = 24
x = 4/25 = 16%
2007-01-25 00:31:07 · answer #2 · answered by Philo 7 · 0⤊ 0⤋
7/120 makes 16%
2007-01-25 00:27:32 · answer #3 · answered by spartan_1117 3 · 0⤊ 0⤋