Answer:
a) Cost of rent to own option is = ($156.99/month) ( 2 yrs)( 12 month/yr) = $3767.76
b) The amount of the finance charge is = $3767.76 - $3225.00 = $542.76
c) the simple interest rate can be calculated by this formula
I = Prt, where
I = total interest value = $542.76
P = is the present worth or original cost including taxes = $3225.00
t = time in yrs = 2
r = Yearly interest rate, By rearranging the formula:
r = I /Pt, r = ( $542.76 / $3225.00 . 2) ( 100) = 8.415%
Step-by-step explanation:
