Elisa buys a violin, which costs $2200, through a hire purchase agreement. Under the agreement, she
pays a deposit of $500 and makes 8 monthly repayments of $320. Find the total interest charged and
the flat rate of interest, correct to two decimal places

-$860

-58.64%

Step-by-step explanation:

Given the cash price as $2200, the down payment as $500 and monthly installments of $320 for 8 months, the interest charged is calculated as;

Hence, the interest charged is $860

#Flat rate of interest is similar to simple interest rate.

Knowing n=8 months and interest as $860, the rate is calculated as:

Hence, the flat rate of interest over the 8 months is 58.64%

(8+64)^2= 5184 < answer

step-by-step explanation:

2^3 = 8

4^3= 64

(8+64)^2 = 5184