Question

You are debating about whether to buy a new computer for $800.00 or a refurbished computer with the same equipment for $640.00. If a savings account earns 4.5% APR interest, how much do you really save with a refurbished computer if you put the difference into the savings account for a year?
$7.20

$720.00

$167.20

Answer 1

APR refers to annual interest rate i e 4.5%

Difference:-

• 800-640
• 160$

Now

Interest:-

• 160(0.045)
• 7.20$

Total savings:-

• 160+7.20
• 167.20$

Remember the code:-

• Question's calculations mostly given in its options