A television set is on sale for $780 cash, or 25% deposit and $85 per month for 8 months.
How much can be saved by paying cash?
How much is charged in interest?
Calculate the annual rate of simple interest charged?
Working out please:)
for the savings multiply .25 by your 780 cash save your answer then start a new problem and multiply your 85 by your 8 months then add both of those answers into one. next take that number and minus off your cash($780) and that is your savings, i am too shaky on the rest to help with that. i hope this is a start
option 1: cash = 780
option 2: down payment 25% of 780 = 195
$ 85 for 8 monts = 680
total paid = 680+195 = 875
saved by paying cash or interest charged = 875-780 = 95
rate = interest/(principal x time) = 95/(780(8/12) = .183 or 18.3%
To calculate how much can be saved by paying cash, we need to find the total cost of paying the deposit and monthly installments.
First, let's calculate the deposit amount. The deposit is 25% of the total price, which can be found by dividing $780 by 4:
Deposit = (25/100) * 780 = $195
Next, let's calculate the remaining amount to be paid in installments. This can be found by subtracting the deposit from the total price:
Remaining amount = 780 - 195 = $585
Now, let's calculate the total cost of paying in installments. Multiply the monthly payment by the number of months:
Total cost of installments = (Monthly payment) * (Number of months) = 85 * 8 = $680
To find how much can be saved by paying cash, subtract the total cost of installments from the total price:
Savings = 780 - 680 = $100
Therefore, by paying cash, you can save $100.
Now let's calculate the amount charged in interest. The total cost of installments is $680, which is the amount paid in addition to the initial deposit. The interest charged is the difference between the total cost of installments and the remaining amount to be paid without any interest:
Interest = Total cost of installments - Remaining amount = 680 - 585 = $95
So, the amount charged in interest is $95.
To calculate the annual rate of simple interest charged, we need to know the interest rate and the time period. Since we don't have the interest rate given in the question, we cannot calculate the annual rate of simple interest charged without this information.
However, if you have the interest rate, you can use the simple interest formula:
Interest = (Principal) * (Rate) * (Time)
Rearranging the formula, the interest rate can be calculated as:
Rate = (Interest) / (Principal) / (Time)
Where:
- Interest is the amount charged in interest ($95)
- Principal is the remaining amount to be paid without any interest ($585)
- Time is the period in years (in this case, it would be 8 months divided by 12 to convert to years)
By plugging in these values, you can calculate the annual rate of simple interest charged.