Financial maths question please show all working (1 Viewer)

[kpad5991]

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?

 

[harrowed2]

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