A television set is on sale for $780 cash, or 25% deposit and $85 per month for 8 months.
How much can be saved by paying cash?
How much is charged in interest?
Calculate the annual rate of simple interest charged?
Working out please:)
2 answers
for the savings multiply .25 by your 780 cash save your answer then start a new problem and multiply your 85 by your 8 months then add both of those answers into one. next take that number and minus off your cash($780) and that is your savings, i am too shaky on the rest to help with that. i hope this is a start
option 1: cash = 780
option 2: down payment 25% of 780 = 195
$ 85 for 8 monts = 680
total paid = 680+195 = 875
saved by paying cash or interest charged = 875-780 = 95
rate = interest/(principal x time) = 95/(780(8/12) = .183 or 18.3%
option 2: down payment 25% of 780 = 195
$ 85 for 8 monts = 680
total paid = 680+195 = 875
saved by paying cash or interest charged = 875-780 = 95
rate = interest/(principal x time) = 95/(780(8/12) = .183 or 18.3%
2 answers