.-/2 pointsWaneFMAC7 3.1.031. Compute the specified quantity. You are expecting
ID: 3145395 • Letter: #
Question
.-/2 pointsWaneFMAC7 3.1.031. Compute the specified quantity. You are expecting a tax refund of $5,000 in 5 weeks. A tax p oan of $5,000 for a fee of $50 to be repaid by your refund check when it Thinking of the fee as interest, what weekly simple interest rate would loan? What is the corresponding annual rate? HINT [See Example 5.] weekly simple interest rate reparer offers you an "interest-free" arrives in 5 weeks. you be paying on this annual simple interest rate h s Watch It Need Help? ReadIt 8.)-/1 pointsWaneFMAC7 3.1.035 Compute the specified quantity. Layaway plans allow you, for a fee, to pay for an item over a period of time and then receive the item when you finish paying for it. In November 2011, Senator Charles E. Schumer of New York warned that the holiday layaway programs recently reinstated by several popular retailers were, when you took the fees into account, charging interest at a rate significantly higher than the highest credit card rates.t Suppose that you bought a $78 item on November 15 on layaway, with the final payment due December 15, and that the retailer charged you a $4 service fee. Thinking of the fee as interest, what simple interest rate r would you be paying for this layaway plan? (Round your answer to three decimal places.) Need Help?Read ItExplanation / Answer
7. Given: Principal (P)=$5000 ; Interest (I)= $50 ; Time = 5 weeks
Solution:
Rate of interest can be given as :
R = (100×I)÷(P×T)
Weekly
R = (100×50)÷(5000×5)
= 0.2 %
Anually
T = 5 weeks/ 52 weeks
R = (100×50)÷ (5000×5/52)
= 10.4 %
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