Question

Tyler opened a credit card with a 19.5% simple interest rate to purchase a $879 laptop. If he pays off the laptop in 18 months, how much will he have paid in total?

a. $1,016.25
b. $1,022.50
c. $1,029.75
d. $1,035.00

Answer 1

After calculating the simple interest on a $879 laptop purchase with a 19.5% rate over 18 months, Tyler would have paid a total of $1136.75.

Step-by-step explanation:

The question asks us to calculate the total amount Tyler will have paid for a $879 laptop with a 19.5% simple interest rate after 18 months. To find the total interest paid, we use the formula for simple interest: Interest = Principal × Rate × Time. Tyler's principal amount is $879, the rate is 19.5% annually (or 0.195 when converted to a decimal).

The time is 1.5 years (since 18 months is equal to 1.5 years). Calculating the interest: $879 × 0.195 × 1.5 = $257.75. Now we add the interest to the principal to find the total amount paid: $879 + $257.75 = $1136.75. The options provided in the question do not match this calculation.

If we consider the listed options as potential typos, the closest answer to our calculation would be option c. $1,029.75, but this is not the correct amount based on the calculation.