# Thread: Financial maths into question

1. ## Financial maths into question

John bought a TV for \$3250. He paid a 10% deposit and made monthly repayments of \$96 for 3 years. What annual flat rate of interest was John charged?  Reply With Quote

2. ## Re: Financial maths into question

For money owed, do price less deposit

To calculate annual interest do  Reply With Quote

3. ## Re: Financial maths into question

That's incorrect. This question was answered in a Standard Maths thread.

The amount paid= \$325+96x12x3
= \$3 781

The amount borrowed= \$3 250 - 325
= \$2 925

Interest paid = \$3 781 - 2 925
= \$ 856 over 3 years

Use I = PRN

856 = 2925 x R x 3

856 = 8775 x R

R = 856 / 8775
= 0.0975
= 9.75% pa  Reply With Quote

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