vlad purchased some furniture for his apartment. The total cost was $2942.37. He paid $850 down and financed the rest for 18 months. At the end of the finance period. Vlad owed 2147.48. What annual interest rate compounded monthly eas he being charged? round your answers to two decimal places

Answer 1

balance owing now = 2942.37 - 850 = 2092.37

so let the monthly rate be i

2092.37(1+i)^18 = 2147.48
(1+i)^18 = 1.026338554
take 18th root on your calculator
1+i = 1.026338554^(1/18) = 1.0014453..
i = .0014453...
12i = .0173443

He was charged appr 1.73 % per annum compounded monthly