Larry has taken out a $600 loan with a 12 percent interest rate to buy a laptop computer. He needs to repay the loan by the end

Question

2 years ago

13

Larry has taken out a $600 loan with a 12 percent interest rate to buy a laptop computer. He needs to repay the loan by the end

of two years. He will be paying $28.24 every month for two years. What kind of interest rate is Larry being charged? Explain the reasons for your answer.

Mathematics

2 answers:

Zielflug [23.3K] · Answer 1 · 2022-08-21T14:06:39+03:00

Zielflug [23.3K]2 years ago

6 0

Answer:

Larry is paying the same amount every month for the duration of the loan. So he is being charged a fixed interest rate.

Step-by-step explanation:

plato answer

Ipatiy [6.2K] · Answer 2 · 2022-08-21T12:09:39+03:00

The is the concept of financial mathematics, given that Larry has a loan of $600 which has an interest rate of 12%, which is payable within 2 years. This mode of payment is called the simple interest mode of payment. This is because the he has been given a fixed periodic amount of payment. In compound interest, the amount payable is not fixed.