Question

Find I. Choose the right answer.

Amount Financed (m) = $2,500
Number of Payments per year (y) = 12
Number of Payments (n) = 36
Total Interest (c) = $158.15

I =
%.

Answer 1

Hi there

I=(2yc)÷(m (n+1))
I=(2×12×158.15)÷(2,500×(36+1))
I=0.041×100
I=4.1%

Good luck!

Answer 2

4.1%

Explanation:

Given :

Amount Financed (m) = $2,500

Number of Payments per year (y) = 12

Number of Payments (n) = 36

Total Interest (c) = $158.15

To Find : I %

Solution :

Formula :
`I=(2yc)/(m(n+1))`

`I=(2*12*158.15)/(2500(36+1)`

`I=(3795.6)/(2500* 37)`

`I=0.041`

`I=0.041*100 = 4.1\%`

Hence I = 4.1%