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john bought a used truck for $4,500 he made an agreement with the dealer to put $1,500 down and mae payments of $350 for the next 10 months the extra cost paid by taking this deal is equivalent to what actual yearly rate of interest

Verified Answer :

leahrosetickner

So $350 X 10 =$3500

Then, you add the initial $1500,

which means he now has $5000

The difference between $5000 and $4500 is $500,

And $500 is 9% of $4500,

So the deal is equivalent to a yearly interest of 9%

Hope this helps ! :)

He bought the car for $4500 and he put $1500 down and making payments of $350 for tbe next 10 months he would have paid $500 dollars extra
$4500-$1500= $3000.
$350×10=$3500 and $3500-$3000=$500

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