A family made a down payment of $75 and borrowed the balance

0Lucky0
I'm not an expert, trying to clear the confusion here.

I understand from your statement that you are not clear whether the encyclopedia was the product that was purchased or mortgaged.

As per the question, "Borrowed the balance on a set of encyclopedias" means that the family borrowed the remaining amount of money needed to purchase the encyclopedias after making the down payment. In this case, the encyclopedias cost $400, and the family made a down payment of $75.

So, the balance on the set of encyclopedias, which is the remaining amount to be paid, is calculated by subtracting the down payment from the total cost of the encyclopedias:

Balance = Total cost - Down payment
Balance = $400 - $75
Balance = $325

Therefore, the family borrowed $325 to cover the remaining cost of the encyclopedias.

Hope this helps

\(400 - 75 = 325\) (Borrowed amount)

Interest paid : \(9 + 16*23 - 325 = 52\)

\(\frac{52}{325}*100 = 16\)%, Answer must be (D)