11.
A second-hand car is advertised for $$ 15575$ cash or $$ 1600$ deposit and 24 monthly payments of $$ 734.70$ .
a. What is the difference between the cash price and the HP price?
b. What annual rate of interest is paid on the HP plan?

Answer

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Answer

Calculate annual interest rate: ((HP price - 1600) / 1600) * (12 / 24) * 100

Steps

Step 1 ：Calculate the HP price: 1600 + 24 * 734.70

Step 2 ：Difference between cash and HP price: HP price - 15575

Step 3 ：Calculate annual interest rate: ((HP price - 1600) / 1600) * (12 / 24) * 100