Question

you purchase a computer for 755.00 plus 5% sales tax you decide to finance it though the stories 0% interest program for six month the terms state you must pay 50.00 month qnd that if you miss a payment you will be assessed a late fee of 39.00 plus intrest accrued to that point at a 17.25 APR if you miss a payment in the fifth month how lucb interest will ypu be charged?

Answer 1

Price of computer = $755.00

Sales tax = 5%

Final price of computer = 755 + $755 \times \frac{5}{100}$

                          = 755 × $\frac{105}{100}$

                          = $792.75

APR = 17.25 % yearly=8.625%(Semi Annualy)=$\frac{17.25}{12}$% monthly

Total price of computer including APR = 792.75 (1+ $\frac{8.625}{100}$)= 792.75 × $\frac{108.625}{100}$ = 792.75 × 1.08625=$861.124

You have to pay this money in six months.

    Money paid by me in each month including APRand interest of $ 50 = $\frac{861.124}{6}+50=143.52$ +50=$ 193.52

Money paid by me in sixth month, if i miss a payment in the fifth month as an installment of computer= $193.52+$39=  $232.52

So,Total Interest charged in sixth month =50+39+APR of each month= 232.52 - 132.125 =  $100.395

Answer 2

The answer is:

$56.98