Calculating Interest and Costs

The video tutorial explains how to calculate the total cost of a computer purchased on a payment plan, including the interest paid over two years. It covers the steps to determine the total cost, the interest amount, and the annual interest rate. The tutorial also demonstrates how to calculate the percentage interest rate by dividing the annual interest by the original retail price.

What is the recommended retail price of the computer?

• $3,600

• $4,462

• $863.68

• $429

How many weeks are there in two years?

• 52

• 104

• 26

• 78

What is the total cost of the computer over two years?

• $429

• $3,600

• $863.68

• $4,462

How is the interest calculated in this scenario?

• Total cost minus retail price

• Retail price minus total cost

• Weekly payment times number of weeks

• Retail price divided by number of years

What is the interest paid per year?

• $863.68

• $3,600

• $4,462

• $431.84

How do you calculate the interest per annum?

• Divide total interest by number of years

• Subtract retail price from total cost

• Add retail price to total cost

• Multiply total interest by number of years

What is the purpose of calculating interest per annum?

• To understand the annual cost of borrowing

• To find the total cost of the computer

• To determine the weekly payment

• To calculate the retail price

What is the percentage interest rate?

• 10%

• 12%

• 8%

• 15%

How is the percentage interest rate calculated?

• Divide annual interest by retail price

• Add annual interest to retail price

• Multiply annual interest by retail price

• Subtract annual interest from retail price

Why is it important to know the percentage interest rate?

• To calculate weekly payments

• To determine the retail price

• To compare different loan offers

• To find the total cost