Question

Garvin bought skis that cost $500 at the new store opening. The store gave him 60 days free credit. However, if he does not pay within 60 days they will charge him a 12 percent annual interest rate. How much interest will Garvin pay if he lets the account go for 90 days.

Answer 1

Answer:

If he lets the account go for 90 days, he will

pay an interest of $60

Step-by-step explanation:

Here, we want to calculate the interest Garvin will pay if he lets the account go for 90 days

Since 90 days is greater than 60 days, this means that he is going to pay a 12% annual interest rate

Thus, mathematically , the amount to pay will be;

12% of $500

= 12/100 * 500 = 6000/100 = $60