You purchase a computer for $875.00 plus 5% sales tax. You decide to finance it through the store's 0% program for 12 months. The terms state that you must pay $100.00/month and that if you miss a payment, you will be assessed a late fee of $39.00 plus the interest accrued to that point at a 14.25% APR. If you miss a payment in the eighth month, how much interest will you be charged?. A. $83.13. B. $16.63. C. $87.28. D. $20.78

Question

18-12-2017
Mathematics

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You purchase a computer for $875.00 plus 5% sales tax. You decide to finance it through the store's 0% program for 12 months. The terms state that you must pay $100.00/month and that if you miss a payment, you will be assessed a late fee of $39.00 plus the interest accrued to that point at a 14.25% APR. If you miss a payment in the eighth month, how much interest will you be charged?. A. $83.13. B. $16.63. C. $87.28. D. $20.78

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Аноним Аноним · Answer 1 · 2017-12-18T17:14:01+01:00

At first you need to know total cost (875)(1.05)=918.75According to the fact that you have already paid for 7 months, we have to subtract 700=218.75 what still needs to be payedOn the 8 moth you have missed the payment so (218.75)(8/12), and remaining moths are nearly 145.83333To finish, multiply by the apr and you will get $20.78 interest charged. So, I am pretty sure that he answer is D.