Question

Juan bought a desktop computer and a laptop computer. Before finance charges, the laptop costs $300 more than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 6% per year, and for the laptop it was 7% per year. The total finance charges for one year were $398. How much did each computer cost before finance charges?

Answer 1

Answer:

The cost of each computer before finance is:

Desktop: $2900.00,  Laptop: $3200.00

Step-by-step explanation:

Lets say the cost of Desktop is 'D' dollars.

The cost of laptop is $=D+300$ dollars.

Total finance charge for 1 year is given by:

$0.06\times D+0.07 \times (D+300)=398$

Solving for D we get:

$0.06D+0.07D+21=398$.......(equation 1)

$0.13D=398-21=377$

$D=\frac{377}{0.13} =2900$

Now the cost of laptop is D+300:

$D+300=2900+300=3200$

So before finance, the cost of desktop was $2900.00 and the cost of laptop was $3200.00.

P.S: You can check if your calculation is correct by plugging the values of the cost of laptop and desktop in the equation 1.