Problem
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?
Solution
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
