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30. You buy items costing $400 and finance the cost with a simple interest fixed installmentloan at 6% simple interest per year. The finance charge is $48.a. How many years will you be paying?b. What is your monthly payment?

Sagot :

Given:

Costing = $400

Simple interest = 6%

Finance charge = $48

Simple interest formula is:

[tex]\begin{gathered} =\frac{P\times R\times T}{100} \\ \end{gathered}[/tex][tex]\begin{gathered} \frac{P\times R\times T}{100}=48 \\ \frac{400\times6\times T}{100}=48 \\ T=\frac{48\times100}{400\times6} \\ T=2 \end{gathered}[/tex]

For 2 year.

(b)

Monthly payment is:

[tex]\begin{gathered} =\frac{400}{24}+\frac{48}{24} \\ =16.66+2 \\ =18.66 \\ \end{gathered}[/tex]

Monthly payment is $18.66

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