Question

you purchase a computer for 755.00 plus 5% sales tax you decide to finance it though the stories 0% interest program for six month the terms state you must pay 50.00 month qnd that if you miss a payment you will be assessed a late fee of 39.00 plus intrest accrued to that point at a 17.25 APR if you miss a payment in the fifth month how lucb interest will ypu be charged?

Answer 1

The answer is:

$56.98

Answer 2

Price of computer = $755.00

Sales tax = 5%

Final price of computer = 755 +
`755 * (5)/(100)`

= 755 ×
`(105)/(100)`

= $792.75

APR = 17.25 % yearly=8.625%(Semi Annualy)=
`(17.25)/(12)`% monthly

Total price of computer including APR = 792.75 (1+
`(8.625)/(100)`)= 792.75 ×
`(108.625)/(100)` = 792.75 × 1.08625=$861.124

You have to pay this money in six months.

Money paid by me in each month including APRand interest of $ 50 =
`(861.124)/(6)+50=143.52` +50=$ 193.52

Money paid by me in sixth month, if i miss a payment in the fifth month as an installment of computer= $193.52+$39= $232.52

So,Total Interest charged in sixth month =50+39+APR of each month= 232.52 - 132.125 = $100.395