Question

john bought a used truck for 4,500. he made an agreement with the dealer to put 1,500 down and make payments of 350 for the next 10 months the extra cost paid by taking this deal is equivalent to what actual yearly rate of interest

Answer 1

So $350 X 10 =$3500

Then, you add the initial $1500,

which means he now has $5000

The difference between $5000 and $4500 is $500,

And $500 is 9% of $4500,

So the deal is equivalent to a yearly interest of 9%

Hope this helps ! :)