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2 years ago

10. A furniture company allows customers to purchase household furnishings with an in-store loan,

Mathematics

1 answer:

ivanzaharov [21]2 years ago

7 0

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:

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