Question

Sarah bought a lawnmower for $320. She signed up for the buy now pay later plan at the store with the following conditions: $100 down and payments of $25 for the next 12 months. The extra cost paid by taking this plan is equivalent to what actual yearly rate of interest?

Answer 1

The total amount she's paying is $350 and the answer is 25%.

Answer 2

ok so find how much she paid
100 down+25 times 12 months
100+25 times 12
100+300
400

find difference
400-320=80

find percent increase since it is 1 year
80/320=8/32=4/16=2/8=1/4=0.25/1

percent means partst out fo 100
0.25/1 times 100/100=25/100=25%


answer is 25%