Question

Problem:1. There is an air purifier. (1) If I pay in full, I'll pay 1,728(2) If I pay in six installments, I'll pay 300.96, making a total of 6 x 300. 96 = 1,805.76Given:Amount = 1,805.76Principal= 1,728Time=6Required:To determine the value of interest rate and annual interest rate. Explanation: The interest rate can be calculated asInterest = Amount - Principal = 1,805.76 - 1,728 = 77.76Now, we can use the formula Interest=Principal x Rate x Time/100Putting the values77.76= 1,728 x Rate x 6/100 Rate=0.75Rate%=0.0075%Final Answer:Interest Paid=77.76 Interest Rate=0.0075%Since the interest rate is very low, it is a good idea to loan in this case. -Describe the situation in paragraph form.

Answer 1

Given:

Principal - 1, 728

Maturity Value - 1805.76

Time - 6 months

Find: the amount of interest and the annual interest rate

Solution:

To get the amount of interest, simply subtract the principal amount from the maturity value.

$1805.76-1,728=77.76$

Therefore, the amount of interest added is 77.76.

To determine the annual interest rate, we can use the simple interest formula.

$r=\frac{Interest}{Principal\times Time}$

where:

r = annual rate in decimal

interest = interest added → 77.76

Principal = initial amount → 1, 728

Time = time in years → 6 months or 6/12 or 0.5 year

Let's plug those respective numerical values into the formula above.

$r=\frac{77.76}{1,728\times0.5}$$r=\frac{77.76}{864}$$r=0.09$

Therefore, the annual interest rate is 0.09 or 9%.

Situation:

If the air purifier is to be paid in installments for 6 months, there is a 9% annual interest rate that is added to the original price amounting to 77.76.

Assuming average financial income, it would be a good idea to loan based on the calculated interest rate.