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Math Help - time period 2

  1. #1
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    time period 2

    The annual $3600 membership fee at the oak meadows golf club is due at the beginning of the year. Instead of a single "lump" payment, a member can pay $1600 at the start of the year and defer the $2000 balance for five months by paying a $75 surcharge at the time of the second payment. Effectiely, what annual rate of simple interest is oak meadows charging on the $2000 deferred payment?


    P = 3600
    r = ?
    t = 5/12
    I = 2000

    did i plug in the correct numbers into the formula ?
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  2. #2
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    Quote Originally Posted by diehardmath4 View Post
    The annual $3600 membership fee at the oak meadows golf club is due at the beginning of the year. Instead of a single "lump" payment, a member can pay $1600 at the start of the year and defer the $2000 balance for five months by paying a $75 surcharge at the time of the second payment. Effectiely, what annual rate of simple interest is oak meadows charging on the $2000 deferred payment?
    P = 3600
    r = ?
    t = 5/12
    I = 2000
    did i plug in the correct numbers into the formula ?
    No need to worry about the 3600; just concentrate on the 2000.

    r = annual rate
    2000 * (r/12) * 5 = 75
    You can "read" that as: a certain rate r is charged for 5 months
    on $2000, resulting in an interest cost of $75 ; kapish?

    Solve that for r; you should get .09, or 9%.
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  3. #3
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    r = annual rate
    2000 * (r/12) * 5 = 75
    You can "read" that as: a certain rate r is charged for 5 months
    on $2000, resulting in an interest cost of $75 ; kapish?

    Solve that for r; you should get .09, or 9%.
    so if i plug everything into the equaiton it should be

    P = 2000
    r = ?
    t = 5/12
    I = 75 ? or 75 = 2000 ( 1 + r/12 * 5 ) ?
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  4. #4
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    Get away from "that equation" of yours!
    What makes you think it'll solve ALL problems?

    I gave you the PROPER equation for this problem:
    2000 * (r/12) * 5 = 75
    Solve THAT equation for r:
    10000(r/12) = 75
    r/12 = 75/10000
    r = 900/10000
    r = .09
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