Cost of Piano = $100,000
Emma pays 35% in advance and agree to pay $ 70,850 nine months later
Amount borrowed = $100,000*(1-0.35)
Amount borrowed = $65,000
Total payment = Principal borrowed*[1+(Simple Interest rate*Time period)]
where, Total payment = $70,850
Time period = 9 months/12 months = 0.75
$70,850 = $65,000*[1+(Simple Interest rate*0.75)]
1.09 = [1+(Simple Interest rate*0.75)]
(Simple Interest rate*0.75) = 1.09 - 1
Simple Interest rate*0.75 = 0.09
Simple Interest rate = 0.12
So, Annual SImple Interest rate paid is 12%
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