Question 6 • 26-27 Ignite Technical Math-Financial Math - MA2007
The monthly interest rate is 11.27% ÷ 12. Using that rate for 30 monthly payments, the payment is about $29.92, so Harriet paid $897.60 in total and $118.60 of that was interest. The laptop used 2,192 days of electricity (six years plus two leap days), costing 2,192 × $0.36 = $789.12. Thus interest was $118.60 ÷ ($897.60 + $789.12) × 100 ≈ 7.03% of the laptop’s lifetime cost, which is choice A, 7.03%.
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