Sarah bought a lawnmower for $320. She signed up for the buy now pay later plan at the store with the following conditions: $100 down and payments of $25 for the next 12 months. The extra cost paid by taking this plan is equivalent to what actual yearly rate of interest? A. 85%

B. 65%

C. 67%

D. 25%

Student Answer: D

Answer: Incorrect

Question

Diaz

Mathematics

31 January, 00:11

Sarah bought a lawnmower for $320. She signed up for the buy now pay later plan at the store with the following conditions: $100 down and payments of $25 for the next 12 months. The extra cost paid by taking this plan is equivalent to what actual yearly rate of interest? A. 85%

B. 65%

C. 67%

D. 25%

Student Answer: D

Answer: Incorrect

+4

Answers (2)

Know the Answer?

Milo Shaffer · Answer 1

Milo Shaffer 31 January, 00:21

0

The correct answer is C. 67%

Giovanna Shields · Answer 2

100 down+25 x 12 months

100+25 x 12

100+300

400

400-320=80

find percent increase since it is 1 year

80/320=8/32=4/16=2/8=1/4=0.25/1

100

0.25/1 times 100/100=25/100=25%

So, Our answer is D