Multiple choice

Directions: Compare the two quantities in A and B. A family made a down payment of \$75 and borrowed the balance on a set of encyclopedias that cost \$400. The balance with interest was paid in 23 monthly payments of \$16 each and a final payment of \$9. | Quantity A | Quantity B | | --- | --- | | Amount of interest paid as a percent of the amount borrowed | 15% |

  1. Quantity A is greater than quantity B.

  2. Quantity B is greater than quantity A.

  3. Both quantities are equal.

  4. The relationship between the quantities cannot be determined.
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A Correct answer
Explanation

Cost = 400, Down payment = 75, Amount borrowed = 325. Total paid = (23 * 16) + 9 = 368 + 9 = 377. Interest paid = 377 - 325 = 52. Interest percent = (52 / 325) * 100 = 16%. Since 16% > 15%, Quantity A is greater.

AI explanation

The amount borrowed is the total cost minus the down payment, which is 400 - 75 = 325 dollars. The total amount paid in installments is (23 multiplied by 16) + 9 = 377 dollars, making the total interest paid 377 - 325 = 52 dollars. To find the interest as a percentage of the amount borrowed, divide 52 by 325 and multiply by 100, yielding 16 percent. Since 16 percent is greater than 15 percent, Quantity A is greater.

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