Kendalyn has purchased a pet dolphin. The dolphin costs $8,000. Tina decides to borrow money from the bank. The bank charges her $250 a month for the next 5 years.

 

a) Calculate the amount of money Kendalyn pays for the turbo charged skateboard

b) How much money would the skateboard have been if Kendalyn had paid everything upfront?

 

c) How much extra money did Kendalyn spend by not paying upfront?

 

d) What percentage of interest is Kendalyn paying?

 

 

Question:

Derek has purchased 10 gallons of ice cream to help him deal with the summer heat. The cost of the ice cream is $450. He decides to take out a loan. The bank charges him $75 a month for two years.

 

a) Calculate the amount of money Derek pays for the 10 gallons of ice cream.

 

b) How much money would the ice cream cost if Derek had paid for everything upfront?

 

c) How much extra money did Derek spend by not paying upfront?

 

d) What percentage of interest is Derek paying?