The smiths bought new furniture that cost $3,298.00. the store offered them
an option of putting $600 down and making equal payments of $300 a month
for 10 months. use the federal reserve system formula to find the apr the
smiths will pay for taking this plan.

10.99%.

Step-by-step explanation:

We have been given that the Smiths bought new furniture that cost $3,298.00. The store offered them  an option of putting $600 down and making equal payments of $300 a month  for 10 months.

First of all, we will find amount paid by down-payments in 10 months.

Total amount paid by Smiths: .

Now we will find amount paid in interest by subtracting initial amount from total amount.

10 months = 10/12 year =5/6 year.

Now, we will use simple interest formula to solve for interest rate.

Therefore, the annual interest rate is 10.99%.