Henry Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments

of $34. What actual yearly interest rate did Henry pay?
A. 29.09
B. 68.75End of exam
C. 14.55
D. 34.38
Please explain to me

Value of loan = $300

let the monthly rate be i
then
34*(1- (1+i)^-10)/i = 300

hard to solve this type of equation but I have some methods and it gave me
i = appr .02343
so the annual rate compounded monthly is 28.1 %

check:
34(1 - 1.02343^-10)/.02343 = = 299.9988 , not bad I would say

None of your choices are valid using proper compound interest formulas

To calculate the actual yearly interest rate Henry paid, we can use the formula for calculating the annual percentage rate (APR):

APR = (Total Interest / Total Amount Financed) * 100

First, let's calculate the Total Interest by subtracting the amount financed from the total amount paid.

Total Interest = Total Amount Paid - Amount Financed

Henry paid $20 down and made 10 monthly payments of $34. So the total amount paid is:

Total Amount Paid = $20 + (10 * $34)

Total Amount Paid = $20 + $340

Total Amount Paid = $360

Now, let's calculate the Amount Financed by subtracting the down payment from the price of the dishwasher.

Amount Financed = Price of Dishwasher - Down Payment

Price of Dishwasher = $320

Down Payment = $20

Amount Financed = $320 - $20

Amount Financed = $300

Next, let's calculate the Total Interest:

Total Interest = $360 - $300

Total Interest = $60

Now we can calculate the APR:

APR = (Total Interest / Amount Financed) * 100

APR = ($60 / $300) * 100

APR = 0.2 * 100

APR = 20

Therefore, the actual yearly interest rate that Henry paid is 20%.

As none of the given options match the calculated APR, it seems there might be an error in the available answer choices.