A large fl at screen TV costs $999. Josh agrees to pay $100 deposit and 12 monthly payments of $100.
a Calculate the total amount of interest Josh will pay.
b What rate of interest was he charged?

Let's break down the problem step by step:

### Given Information:
- Price of the TV: \$999
- Deposit: \$100
- Number of monthly payments: 12
- Each monthly payment: \$100

### a) Total Amount of Interest Josh Will Pay

1. **Total amount paid by Josh:**
   - Deposit: \$100
   - Monthly payments: $12 \times 100 = 1200$
   - Total amount paid = Deposit + Monthly payments = $100 + 1200 = 1300$

2. **Interest paid:**
   - Interest is the difference between the total amount paid and the original cost of the TV.
   - Interest = Total paid - Price of TV = $1300 - 999 = 301$

So, **Josh will pay \$301 in interest**.

### b) Rate of Interest Charged

To calculate the rate of interest, we use the simple interest formula:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest (\$301),
- $P$ is the principal (the amount borrowed after the deposit), $P = 999 - 100 = 899$,
- $r$ is the rate of interest per year (which we need to find),
- $t$ is the time in years (12 months = 1 year).

Rearranging the formula to solve for $r$:

\[
r = \frac{I}{P \times t}
\]

Substitute the known values:

\[
r = \frac{301}{899 \times 1} \approx 0.3348
\]

So, the rate of interest is approximately $33.48\%$ per year.

### Summary:
- a) The total amount of interest Josh will pay is **\$301**.
- b) The rate of interest charged is approximately **33.48\% per year**.

Would you like more details or have any other questions?

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Here are 5 related questions to consider:
1. How would the interest change if Josh made 24 monthly payments instead of 12?
2. What would the monthly payment be if the interest rate was lower, say 20% per year?
3. How can we calculate compound interest instead of simple interest for a similar loan?
4. If Josh paid a higher deposit, how would the interest amount change?
5. How would the interest calculation change if Josh paid a different amount each month?

**Tip:** When calculating interest, it's important to understand whether the interest is simple or compound to ensure the correct rate is applied!

A large flat screen TV costs $999. Josh agrees to pay $100 deposit and 12 monthly payments of $100. a) Calculate the total amount of interest Josh will pay. b) What rate of interest was he charged?

Learn how to calculate the total interest paid and the rate of interest for a $999 TV purchase with a $100 deposit and 12 monthly payments of $100. This problem involves simple interest calculation, suitable for students in Grades 9-10.

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