Question

ou purchase a computer for $755.00 plus 5% sales tax. You decide to finance it through the store's 0% interest program for six months. The terms state you must pay $50.00/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 17.25% APR. If you miss a payment in the fifth month, how much interest will you be charged?

Answer 1

If you miss a payment in the fifth month, you will be charged $44.94 in interest.

Step-by-step explanation:

To find the amount of interest charged for missing a payment in the fifth month, we need to calculate the interest accrued up until that point. The purchase price of the computer is $755.00 plus 5% sales tax, which totals $792.75. Over the course of 6 months, you make 6 payments of $50.00 each, totaling $300.00. If you miss a payment in the fifth month, you will be assessed a late fee of $39.00 and an interest charge calculated at a 17.25% APR. To determine the interest charge, we need to calculate the daily interest rate by dividing the APR by 365 (days in a year) and then multiply it by the number of days the payment is late. In this case, the payment is late by 120 days (5 months). The daily interest rate is 17.25% / 365 = 0.04726%. Therefore, the interest charge is 0.04726% * 120 days * $792.75 = $44.94.

Answer 2

$143.47 Would be the answer your looking for.