Question

A new homeowner bought a refrigerator from a discount appliance store for $635.76 after a $200 down payment, using an installment loan with an apr of 22.99%. the homeowner makes 12 equal credit card payments of $59.81 to pay off the loan. the discount appliance store charges $1.50 for every payment made by credit card. the homeowner also had to pay late fees in the amount of $25 three different times. what is the total cost of the refrigerator? show all necessary work.

Answer 1

The total cost of the refrigerator is $828.82, including the purchase price, interest paid on the loan, credit card payment fees, and late fees.

Step-by-step explanation:

To find the total cost of the refrigerator, we need to consider the purchase price, the interest paid on the loan, the credit card payment fees, and the late fees.

First, let's calculate the interest paid on the loan.

The loan amount is $635.76 - $200 = $435.76.

The interest is calculated as: $435.76 * 0.2299 = $100.06.

Next, let's calculate the total credit card payment fees. Since there are 12 payments made, the fee is $1.50 * 12 = $18.

Finally, let's calculate the total late fees. Since the homeowner had to pay late fees three times, the total late fees are $25 * 3 = $75.

Now, we can find the total cost of the refrigerator: $635.76 + $100.06 + $18 + $75 = $828.82.