Question

You decide to buy a 60-inch plasma-screen TV. To do so, you borrow $4,300 from the electronics store at 1.8 percent per month simple interest, with no payments due for two years from the date of purchase. How much do you owe on the loan after 15 months? Round your answer to the nearest whole dollar.

Answer 1

Hi there
The formula is
A=p (1+rt)
A future value?
P present value 4300
R interest rate 0.018
t time 15/12
So how much you owe after 15 months
A=4,300×(1+0.018×(15÷12))
A=4,396.75

Hope it helps