Noel Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments of $34. What actual yearly interest
2 answers:
Answer:
The correct option is B. 14.55 %
Step-by-step explanation:
Cost price of the new dishwater = $320
Down payment made by Noel = $20
Amount which is left to be paid = 320 - 20 = $300
Number of monthly payment = 10
Amount paid for each monthly payment = $34
Total amount paid by Noel = Down payment + Total monthly payment
= 20 + 34 × 10
= $360
Interest paid by Noel = 360 - 320
= $40
Principal value of the interest = $300
Time = monthly payment months + 1 ( This is the month in down payment is made)
Time = 11 months
Actual yearly interest paid by Noel = 14.55 %
Therefore, The correct option is B. 14.55 %
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