Answer:
10.99%.
Step-by-step explanation:
We have been given that the Smiths bought new furniture that cost $3,298.00. The store offered them an option of putting $600 down and making equal payments of $300 a month for 10 months.
First of all, we will find amount paid by down-payments in 10 months.
Total amount paid by Smiths: .
Now we will find amount paid in interest by subtracting initial amount from total amount.
10 months = 10/12 year =5/6 year.
Now, we will use simple interest formula to solve for interest rate.
Therefore, the annual interest rate is 10.99%.
