Question

Problem:1. There is an air purifier. (1) If I pay in full, I'll pay 1,728(2) If I pay in six installments, I'll pay 300.96, making a total of 6 x 300. 96 = 1,805.762. In my hometown, If I want to loan 10,000. I'll pay 10,000 x 1% x 12 + 10,000 = 11,200-Determine the interest rate for the period and annual interest rate. -Based on the interest rates you computed, do you think it is good idea to loan?

Answer 1

Given:

`\begin{gathered} Pincipal,P=1728 \\ Amount,A=1805.76 \\ Time,t=6 \end{gathered}`

Required: To calculate the Interest paid and annual interest rate.

Explanation: The Interest paid can be calculated as follows

`\begin{gathered} Interest=Amount-Principal \\ =1805.76-1728 \\ =77.76 \end{gathered}`

Now, the interest rate can be determined by using the formula for Interest

`Interest=(P* R* T)/(100)`

Putting the values

`77.76=(1728* R*6)/(100)`

Solving for R gives

`\begin{gathered} R=(7776)/(1728*6) \\ =0.75\% \end{gathered}`

Final Answer: The Interest paid is 77.76 and the interest rate is 0.75%.

Since the interest rate is relatively low, in this case, it is good to loan.