Question 27 • 26-27 Ignite Technical Math-Financial Math - MA2007
The monthly interest rate is 11.70% ÷ 12 = 0.975%, and Seth made 30 identical payments. Using the loan-payment formula, each payment is about $55.32, so the total paid for the computer was about 30 × $55.32 = $1,659.60. Over seven years, including two leap years, electricity cost 2,557 × $0.79 = $2,020.03; therefore, electricity was about $2,020.03 ÷ ($1,659.60 + $2,020.03) × 100% = 54.9% of the lifetime cost. The closest choice is 54.898%.
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