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You purchase a computer for $875
You purchase a computer for $875.00 plus 5% sales tax. You decide to finance it through the store's 0% program for 12 months. The terms state that you must pay $100.00/month and that if you miss a payment, you will be assessed a late fee of $39.00 plus the interest accrued to that point at a 14.25% APR. If you miss a payment in the eighth month, how much interest will you be charged?. A. $83.13. B. $16.63. C. $87.28. D. 58.19
Expert Solution
Answer:
The answer is : C. $87.28
Step-by-step explanation:
You purchase a computer for $875.00 plus 5% sales tax.
So, total price becomes : = $918.75
Monthly rate =
So, 8 months rate = = 0.095
So, when a payment is missed, the interest charged is =
= $87.28
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