Question

Tammy opened a credit card with a 19% simple interest rate to purchase a $879 laptop. If she pays off the laptop in 18 months, how much will she have paid in total?

Answer 1

$1146.216

Explanation:

Given data

Principal= $879

Rate= 19%

Time = 18months= 1.6 years

The expression for the simple interest is

A=P(1+rt)

substitute

A=879(1+0.19*1.6)

A= 897(1+0.304)

A= 879*(1.304)

A= $1146.216

Hence the amount to be paid is $1146.216