Rates and Concentrations - Questions
Question 12
25965
Anika is buying a used car for $12,000. Finance is available at a deposit of 10% and monthly repayments of $280 for 4 years.
(i) How much in total did she pay for the car? (2 marks)
(ii) What was the flat interest rate per annum? (2 marks)
\begin{align}
\text{(i)}\quad \text{Deposit}&= 12000\times 10\%\\
&=\$1200\\
\text{Repayments} & = 280 \times 48 \\
&=\$ 13440\\
\text{Total}&=1200+13440\\
&=\$14540
\end{align}
\begin{align}
\text{(ii)}\quad \text{Amount borrowed} & = 12000 - 1200 \\
& = \$10800\\
\text{Interest} & = 14640 - 12000\\
&=\$2640\\
\%\text{pa}&=\frac{2640}{10800}\times 100\% \div 4\\
&=6.1\% \text{p.a}
\end{align}