Question

PLEASE HELP ME !!!

Beaumont made some home improvements for $8,944 using a six-month deferred payment plan with an interest rate of 21.57%. What is the balance after the deferment period if no payments are made?
$8,944.00
$10,873.22
$9,861.55
$9,953.01

Answer 1

The answer is B. $10,873.22

Answer 2

The correct option is B) $10,873.22

Explanation:

Consider the provided information.

Beaumont made some home improvements for $8,944 using a six-month deferred payment plan with an interest rate of 21.57%.

First calculate the 21.57% of $8944.

This can be written as:

`(21.57)/(100)* 8944=1929.2208`

If no payments are made then he need to pay $8,944 plus 21.57% of $8,944.

Thus, the total amount he needs to pay is:

8944 + 1929.2208 = 10873.2208 ≈ 10873.22

Hence, the correct option is B) $10,873.22