SOLUTION: The hire purchase price of a refridgerator is R6500. the deposit of R500 is made and the remainder is paid in equal monthly payments of R250. what is the interest rate ( simple int
Algebra.Com
Question 1068812: The hire purchase price of a refridgerator is R6500. the deposit of R500 is made and the remainder is paid in equal monthly payments of R250. what is the interest rate ( simple interest ) charged on this transaction?
Answer by KMST(5328) (Show Source): You can put this solution on YOUR website!
It depends on how many payments of are required.
The number of payments required should be stated as part of the question.
If you have to make only such payments,
the amount paid in those such payments adds up to
,
and since that plus the deposit equals the full price,
,
the interest rate would be .
If you have to make such payments,
the amount paid in those such payments adds up to
.
After the deposit, there was a debt of
.
If .
That amounts to of the amount financed.
With that paid over ,
The simple interest would be .
months
and since that plus the deposit equals the full price,
,
the interest rate would be .
If you want to write a formula, you could write
, where
= interest paid,
= amount financed,
= time in years, and
= interest rate as a decimal, for example for .
Then, for ,
with for monthly payments,
you would write
, and solve to get .
(for interest rate.
RELATED QUESTIONS
The hire purchase price of a refrigerator is R6500. The deposit of R500 is made the... (answered by fractalier)
The hire purchase price of a refrigerator is R6500. The deposit of R500 is made the... (answered by fractalier,addingup)
The hire purchase price of a refrigerator is 6000. The deposit of 500 is made and the... (answered by CPhill)
Adam bought a $500 tablet on a hire purchase plan consisting of a deposit, then monthly... (answered by Solver92311)
A man is considering the purchase of a used automobile. The total price is $6200. With... (answered by ikleyn)
The cash price of a television set is $10 000.00
A woman buys the television set on hire (answered by Theo)
Desmond will discharge a debt of R500 000 six years from now, using the sinking fund... (answered by Theo)
Mary paid 8.5% sales tax and . . .
What is the purchase price of the... (answered by ikleyn)
John wants to buy a car on hire purchase for N$75,000.00 at the rate of 10% p.a.... (answered by parmen,ikleyn)