Posted by **sarah** on Monday, June 24, 2013 at 6:36pm.

I need help with this I keep putting the numbers in wrong on the formula ! PLEASE HELP

Price of article = $315.50

Down payment = $31.55

Monthly payment amount = $16.50

Duration of payments = 20 months

True annual interest rate to the nearest tenth = %

Formula: I(Interest)= 2YC/M(N+1)

y = payments per year; c = total interest paid; m = amount financed; n = total number of payments.

- Math -
**Ms. Sue**, Monday, June 24, 2013 at 6:42pm
Let's figure it this way.

315.5 - 31,55 = 283.95 >> amount financed

16.5 * 20 = 330 >> amount paid

330 - 283.95 = 46.05 >> interest

46.05 / 283.95 = 0.16217 = 16.2% >> interest rate

- Math Correction -
**Ms. Sue**, Monday, June 24, 2013 at 7:17pm
Please ignore my previous post. I goofed!

I = PRT

46.05 = 283.95 * R * 1.6667

46.05 = 473.26R

46.04 / 473.26 = R

0.0972 = 9.7% = R

## Answer this Question

## Related Questions

- Math - Price of article = $315.50 Down payment = $31.55 Monthly payment amount...
- math - OMG I CAN NOT get this !!!! Purchase price of article = $495 Down payment...
- math - Purchase price of article = $3,000 Down payment = $0 Number of payments...
- Monthly payment-Math - Okay here is my question two guys buy a new room for $10,...
- Finance - Mr. A has taken a car on lease. The down payment is80% of Total amount...
- math - OMG I CAN NOT get this !!!! Purchase price of article = $495 Down payment...
- math - Purchase price of article = $5,555 Down payment = $555 Number of payments...
- Instalment purchases - The cash price of a speed boat is RM60,000. Under an ...
- Business maths - Instalment purchases - The cash price of a speed boat is RM60,...
- drwls,math - so you are saying that i should label p = 30 i = 0.0125/12 = 0....