Question

Abdul bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $150 more than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 7% per year, and for the laptop it was 9.5%per year. The total finance charges for one year were $303. How much did each computer cost before finance charges?

Answer 1

The cost of desktop before finance charge was $1750.

The cost of laptop before finance charge was $1900.

Explanation:

Let us assume this is a simple interest scenario.

Let D be the cost of desktop

Let L be the cost of laptop

Given- the laptop cost $150 more than the desktop.

So,
`L=D+150`

The total finance charge for 1 year is given by :

`0.07D+0.095L =303`

Substituting the value of L here, we get;

`0.07D+0.095(D+150) =303`

=>
`0.07D+0.095D+14.25 =303`

=>
`0.165D+14.25 =303`

=>
`0.165D=303-14.25`

=>
`0.165D=288.75`

D = $1750

As
`L=D+150`

So,
`L=1750+150=1900`

L = $1900

We can check this :

`0.07(1750)+0.095(1900) =303`

=>
`122.50+180.50=303`

=>
`303=303`

So, the cost of desktop before finance charge was $1750.

The cost of laptop before finance charge was $1900.