Question

. Jackson purchased some power tools totaling $1,543 using a six month deferred payment plan with an interest rate of 23.76%. He did not make any payments during the deferment period. What will the total cost of the power tools set be if he must pay off the power tools within two years after the deferment period? (3 points) $1,543.00 $1,735.63 $2,197.44 $2,746.80

Answer 1

Explanation:

Tools cost $1543

Interest = (Principal * rate * time)/100

Interest after 2 years = (1543*23.76*2)/100 = $733.23

The amount payable = $733.23 + $1,543 = $2,276.23