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 1.5 years, how much will he have paid in total?
$257.11
$621.89
$1,045.25
$1336.11

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$879\\ r=rate\to 19.5\%\to (19.5)/(100)\dotfill &0.195\\ t=years\dotfill &1.5 \end{cases} \\\\\\ A = 879[1+(0.195)(1.5)] \implies A=879(1.2925)\implies A \approx 1136.11`