Help Needed

[Vv20]

Hello.
I have a question regarding simple interest. I've spent 3 days on it, and still have no idea, If you could help with an answer with workouts, it would be greatly appreciated. Question Below:

A retail store advertises a computer for $1,800. It states that it can be purchased for 20% deposit and $60 per month for three years. What is the simple rate of interest being charged?

This is an example of 1 of my work outs:
I decided that the 20% deposit (1800 x 0.2 ) = 360 to be principal, as its the only monies paid.
P= 360
I = 1800 ( 2160 ( 36 months x $60 )) - 360 = 1800
T = 3 years
R = ?
Using Formula : I/ PT = R
1800 / 360 x 3
1800 / 1080
= 1.666....7
= 166 %

See totally off the scale.
I learn from making mistakes, then going through the work outs, to find where i have gone wrong. But i can not find an answer to this online.
Please help.

 

[lev888]

Hello.
I have a question regarding simple interest. I've spent 3 days on it, and still have no idea, If you could help with an answer with workouts, it would be greatly appreciated. Question Below:

A retail store advertises a computer for $1,800. It states that it can be purchased for 20% deposit and $60 per month for three years. What is the simple rate of interest being charged?

This is an example of 1 of my work outs:
I decided that the 20% deposit (1800 x 0.2 ) = 360 to be principal, as its the only monies paid.
P= 360
I = 1800 ( 2160 ( 36 months x $60 )) - 360 = 1800
T = 3 years
R = ?
Using Formula : I/ PT = R
1800 / 360 x 3
1800 / 1080
= 1.666....7
= 166 %

See totally off the scale.
I learn from making mistakes, then going through the work outs, to find where i have gone wrong. But i can not find an answer to this online.
Please help.

Could you explain I = 1800 ( 2160 ( 36 months x $60 )) - 360 = 1800?

 

[Deleted member 4993]

Hello.
I have a question regarding simple interest. I've spent 3 days on it, and still have no idea, If you could help with an answer with workouts, it would be greatly appreciated. Question Below:

A retail store advertises a computer for $1,800. It states that it can be purchased for 20% deposit and $60 per month for three years. What is the simple rate of interest being charged?

This is an example of 1 of my work outs:
I decided that the 20% deposit (1800 x 0.2 ) = 360 to be principal, as its the only monies paid.
P= 360
I = 1800 ( 2160 ( 36 months x $60 )) - 360 = 1800
T = 3 years
R = ?
Using Formula : I/ PT = R
1800 / 360 x 3
1800 / 1080
= 1.666....7
= 166 %

See totally off the scale.
I learn from making mistakes, then going through the work outs, to find where i have gone wrong. But i can not find an answer to this online.
Please help.

The customer borrowed (financed) $ 1440 (=1800*0.8)

The customer paid (60 * 12 * 3 = ) $2160 after 3 years

interest paid = 2160-1440 = 720

interest rate = 720/(3*1440) = 1/6 = 16.7%

 

[Vv20]

To Subhotosh Khan and Lev888. Thank you.
Angels in disguise.