Question

Amit buys a pair of sneakers for $150. He must pay 7% sales tax. He decides to use a credit card to finance the cost over 1 year. The interest rate on this card is 8.5%. What will be the total cost Amit will pay after 1 year?

Answer 1

`\begin{gathered} \text{ price =150} \\ sale\text{ tax}=\text{ (150)}\cdot(0.07)=10.5 \\ Total\text{ price =150+10.5} \\ Total\text{ price =160.5} \\ \text{Interest of the card= (160.5)}\cdot(0.085)=13.643 \\ \text{Total cost=160.5}+13.643 \\ \text{total cost=174.143} \\ Amit\text{ will pay \$174.143 after 1 year} \end{gathered}`