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DENIUS [597]
3 years ago
9

Cedric purchased a new refrigerator and stove at Home Depot for $3,729 on a deferred payment plan with no down

Mathematics
1 answer:
lesya [120]3 years ago
8 0

Answer:

correct option is d. $242.81

Step-by-step explanation:

given data  

APR = 25.5% = \frac{25.5}{12}     = 2.125  

paid = $3,729

solution

we get here finance charge on the 1st month by multiplying 3,729 and now adding it to existing balance

so we get finance charge for the second and third months similarly as

APR ÷ 100 = \frac{2.125 }{100}  = 0.02125

so 1st  

= $3,729 × 0.02125  

= 79.25  

and  

$3,729  + $79.25 = $3808.24  

so for next  

= $3808.24 × 0.02125  

= 80.93

and  

$3808.24  + $80.93 = $3889.17  

so for next  

= $3889.17  × 0.02125  

= 82.64  

and  

$3889.17 + $ 82.64  = $3971.81

so  

finance charge =  3971.81 - 3729  

finance charge = 242.81  

so correct option is d. $242.81

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