Use estimation to select the best response. Do not calculate. If you purchase an item for $3,995 at an interest rate of 9.2%, and you finance it for 1 year, then the amount of add-on interest is about _______.
A) $450
B) $1,440
C) $36
D) $300
E) $360

Question

Quizplus · Accepted Answer

The add-on interest for 1 year at a 9.2% interest rate on $3,995 would be approximately 10% of $3,995, which is close to $400. The closest option to this estimation is $360.

Use Estimation to Select the Best Response