[kizzyb]

Upon graduation from college, Kelly moved in to an nufurnished apartment. Six months ago, she purchased the furniture for new apartment at a downtown store. Friendly Furniture had a special sale. Retail prices were marked down 40 percent, and the store was financing new purchases at an add-on interest rate of 10 percent. At the time, Kelly considered using her credit card to finance the purchase. Given that the APR on her credit card was 18%, she decided that friendly's financing was a better deal. Consequently, she purchased $6000 of furniture and financed it with a 12 month loan at an add-on interest rate of 10 percent. The contract indicated that upon early repayment there would be a partial return of the add-on-interest. The amount of interest returned would be calculated using the rule of 78.

1. What was the APR on her consumer loan?Was Kelly Correct? Was the store a better deal?

2. How much would Helen need in order to pay off this loan at the end of the sixth month?

3. How much additional interest would she have to pay if she held the loan for the entire 12 month period?

I came up with this

1. I said 10%, And yes Kelly was correct, The store was a better deal

2. 7,700

3. 550

Is my anwers correct.