Respuesta :
Answer:
7.583%
Step-by-step explanation:
We have the information that Summer has an offer to buy the item with the sticker price $13,200 i.e. the principal amount 'P' of the item is $13,200.
Further, she needs to pay $460 per month for 36 months .i.e. the total amount 'A' of the item is 460*36 = $16,560.
Also, the total time 't' to pay the amount is 36 months i.e. 3 years. This implies that the amount on the item is compounded monthly .i.e. n = 12
Let, the rate of interest = r %
Using the formula for compound interest given below, we will find the rate of interest.
[tex]A = P * ( 1 + \frac{r}{n})^{nt}[/tex]
i.e. [tex]16,560 = 13,200*(1 + \frac{r}{12})^{12*3}[/tex]
i.e. [tex]\frac{16,560 }{13,200 } = (1 + \frac{r}{12})^{36}[/tex]
i.e. r = 0.07583 = 7.583%
Hence, the annual interest rate is 7.583%
