Question

An appliance store will sell televisions on credit with no payment due for one year from the date of purchase. What is the total cost of a $599 television after one year if the store charges 22.5% simple interest and no payments are made?

Answer 1

Answer: $733.775

Explanation:

Given: The selling price of television = $599

The rate of interest = 22.5 %=0.225

Now, the simple interest after 1 year is given by:-

`\text{Simple interest}=599*0.225\\\Rightarrow\ \text{Simple interest}=134.775`

Now, the total cost of the television after one year if the store charges 22.5% simple interest and no payments are made = $599+$134.775=$733.775