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Answered

You purchase a computer for 875.00 plus 5% sales tax. You decide to finance it through the stores 0% program for 12 months. The terms state you pay nothing until 12 months are over. When you receive the bill, you forget to pay it and are assessed a late fee of 39.00 plus the internet accrued to the initial amount at 14.25% APR. How much interest will you be charged?

Verified Answer :

875 divide 5% =X
X multiply 12 =N
N plus 39 = S
S multiply 14.25%=Answer

I think this is correct. Please forgive me if I did it wrong

The computer is purchased for 875.00 plus 5% sales tax.

Cost of computer = 875+ 5% of 875

                             = 875+0.05 (875)

                            =875+43.75

                           = 918.75.

Cost of computer purchased = $918.75.

Interest charged due to late payment = 14.25% of 918.75

                                                             =0.1425(918.75)

                                                          =130.92

Interest charged= $130.92.

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