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PS 1000-Section 3 #16

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PS 1000-Section 3 #16

by lavanya_25 » Mon May 07, 2007 11:03 am
Hi,

I need help with this problem......

A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%

Thanks!
Lavanya
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Re: PS 1000-Section 3 #16

by jayhawk2001 » Mon May 07, 2007 7:31 pm
lavanya_25 wrote:Hi,

I need help with this problem......

A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
Interest = 23*16 + 9 + 75 - 400 = 52

Amt borrowed = 400-75=325

percent = 52/325*100 = 16%
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by Cybermusings » Tue May 08, 2007 2:17 am
A family made a down payment of $75 and borrowed the balance on a set of encyclopedias that cost $400. The balance with interest was paid in 23 monthly payments of $16 each and a final payment of $9. The amount of interest paid was what percent of the amount borrowed?
(A) 6%
(B) 12%
(C) 14%
(D) 16%
(E) 20%

Amount paid in instalments = 400 - 75 = 325
Total amount paid back = 16*23 + 9 = 377
Interest paid = 377 - 325 = 52
So % = 52/325 * 100 = 16%
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