We know that the items cost $2900 at the end of the loan you will have to pay $3600.
The simple interest formula is given as:
[tex]A=P(1+r)[/tex]where P is the principal, r is the interest rate.
In this case we have:
[tex]\begin{gathered} 3600=2900(1+r) \\ 3600=2900+2900r \\ 2900r=3600-2900 \\ r=\frac{700}{2900} \\ r=0.24 \end{gathered}[/tex]With this we can conclude that:
The finance charge is $700.
The interest rate over the total loan is 2.4% (this means that per month we are going to pay an interest rate of 0.066%).
