Answer:
Difference in cash and plan = $155 - $149.50 = $5.50
Interest Rate = 3.68%
Explanation:
Given:A food processor for $149.50 cash, or $5.00 down and $10.00 per month for 15 months
A food processor by cash = $149.50
Payment plan = Down payment + $10*15 months
= $5 + $10*15
= $5 + $150
Payment plan = $155
Difference in cash and plan = $155 - $149.50 = $5.50
Now we have to find the interest rate
= (difference/original)*100
= (5.50/149.50)*100
Interest Rate = 3.68%