HELP! Year 10 Interest Question (1 Viewer)

[Dementured]

Just need to check my answer. Help would be appreciated. Thanks.

Katie bought a bedroom suite priced at 2800. She paid a 200 deposit, no payments for 6 months and then monthly payments of $125 for 2 years.


a) find the balance owing after the deposit was paid.
b) Calculate the total cost of the bedroom suite (deposit+instalments).
c) How much extra than the marked price of $2800 did Katie pay under the deferred payment plan?
d) What is the flat rate interest charged?

 

[Dan895]

a. 2600
b 200 + 125*24 = 3200
c 400
d 3000/2600 = about 1.15 therefore the intrest rate is about 7.5% PA

 

[Euclid]

a) $2800 - $200 = $2600
b) $200 + ($125 X $ 24) = $200 X $3000
= $3200
c) $3200 - $2800 = $400
d) $3000 / $2600 = Approximately 1.15

 

[Girls]

d) $3000 / $2600 = Approximately 1.15

I would presume they would be expecting %pa and as such I would go with Dan895's answer.