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Aliun [14]
3 years ago
6

A food processor for $149.50 cash, or $5.00 down and $10.00 per month for 15 months

Mathematics
1 answer:
ddd [48]3 years ago
6 0

Answer:

Difference in cash and plan = $155 - $149.50 = $5.50

Interest Rate = 3.68%

Step-by-step explanation:

Given:A food processor for $149.50 cash, or $5.00 down and $10.00 per month for 15 months

A food processor by cash = $149.50

Payment plan =  Down payment + $10*15 months

= $5 + $10*15

= $5 + $150

Payment plan = $155

Difference in cash and plan = $155 - $149.50 = $5.50

Now we have to find the interest rate

= (difference/original)*100

= (5.50/149.50)*100

Interest Rate = 3.68%

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