A small business examines the income of 10 random households to determine if the community will be a good location for a store.
2 answers:
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Answer:
correct option is d. $242.81
Step-by-step explanation:
given data
APR = 25.5% = = 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 = = 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