Sarah bought a lawnmower for $320. She signed up for the buy now pay later plan at the store with the following conditions: $100

Question

3 years ago

8

Sarah bought a lawnmower for $320. She signed up for the buy now pay later plan at the store with the following conditions: $100

down and payments of $25 for the next 12 months. The extra cost paid by taking this plan is equivalent to what actual yearly rate of interest? A. 85%
B. 65%
C. 67%
D. 25%
Student Answer: D
Answer: Incorrect

Mathematics

2 answers:

ANEK [815] · Answer 1 · 2022-01-22T09:33:18+03:00

ANEK [815]3 years ago

6 0

100 down+25 x 12 months
100+25 x 12
100+300
400

400-320=80

find percent increase since it is 1 year
80/320=8/32=4/16=2/8=1/4=0.25/1

100
<span>0.25/1 times 100/100=25/100=25%

So, Our answer is D</span>

Karolina [17] · Answer 2 · 2022-01-22T07:56:11+03:00

Karolina [17]3 years ago

4 0

The correct answer is C. 67%