The contract for the purchase of a $1500 fur coat requires payment in 30 days. If...

 

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The contract for the purchase of a $1500 fur coat requires payment in 30 days. If the bill is paid in 10 days, there will be a 4% discount. If payment is not made in 30 days, there is a $25 additional charge for each 30-day period of delinquency. a) What rate of interest can the purchaser consider his money earns if he pays the bill in 10 days? b) What rate of interest is the delinquency charge? The contract for the purchase of a $1500 fur coat requires payment in 30 days. If the bill is paid in 10 days, there will be a 4% discount. If payment is not made in 30 days, there is a $25 additional charge for each 30-day period of delinquency. a) What rate of interest can the purchaser consider his money earns if he pays the bill in 10 days? b) What rate of interest is the delinquency charge? The contract for the purchase of a $1500 fur coat requires payment in 30 days. If the bill is paid in 10 days, there will be a 4% discount. If payment is not made in 30 days, there is a $25 additional charge for each 30-day period of delinquency. a) What rate of interest can the purchaser consider his money earns if he pays the bill in 10 days? b) What rate of interest is the delinquency charge? The contract for the purchase of a $1500 fur coat requires payment in 30 days. If the bill is paid in 10 days, there will be a 4% discount. If payment is not made in 30 days, there is a $25 additional charge for each 30-day period of delinquency. a) What rate of interest can the purchaser consider his money earns if he pays the bill in 10 days? b) What rate of interest is the delinquency charge?

Answer rating: 100% (QA)

To calculate the rate of interest in these two scenarios we can use the following formulas a Rate of ... View the full answer