henry devine bought a new dishwasher for320.00. he pays 20.00 down and made 10 monthly payments of 34.00?

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henry devine bought a new dishwasher for320.00. he pays 20.00 down and made 10 monthly payments of 34.00?

what actual yearly interest rate did henry pay?

2007-02-14 02:21:33 · 3 answers · asked by daviscarmeleta 1 in Business & Finance ➔ Renting & Real Estate

3 answers

1.0625

2007-02-14 02:31:12 · answer #1 · answered by Lauren S 2 · 0⤊ 0⤋

If Henry pays $20 down, he's left with $300 to pay interest on. Since he's only paying for 10 months, he's paying $30 toward the principal and $4 of interest. $4 x 10 =$40 total interest. $40/$300=.133 (13% interest) If they want it annualized, you should calculate 4 (monthly interest) x 12 (months)=$48, 48/300 = 0.16, so the annual rate is 16%, even though he didn't pay it all because he finished his payments early.

2007-02-14 02:33:19 · answer #2 · answered by callthedog 2 · 0⤊ 0⤋

Why are you 2 responders doing this person's homework for them?

2007-02-14 07:52:00 · answer #3 · answered by CALIFORNIA GOLD 3 · 0⤊ 1⤋