Question 6 • 26-27 Ignite Technical Math-Financial Math - MA2007
The monthly interest rate is 10.31% ÷ 12. Using the loan-payment formula for 48 monthly payments on $1,874 gives a payment of about $47.83, or about $2,295.84 total in payments. Water costs $2.11 × 52 × 8 = $877.76, so the total lifetime cost is $3,173.60. The original price’s share is $1,874 ÷ $3,173.60 × 100 ≈ 59.07%, which is choice B.
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