You decide to buy a 60 in plasma-screen tv. you borrow $4300 from the electronics store at 1.8% per month simple interest, with no payments due for 2 years from the date of purchase. how much will you owe on the loan after 15 months? round your answer to the nearest whole dollar.

Question

Moshe Livingston

Mathematics

20 September, 02:55

You decide to buy a 60 in plasma-screen tv. you borrow $4300 from the electronics store at 1.8% per month simple interest, with no payments due for 2 years from the date of purchase. how much will you owe on the loan after 15 months? round your answer to the nearest whole dollar.

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Michael Anderson · Answer 1

4300 is your principal

1.8% interest rate (change it into decimal form; 0.018)

2 years is our time

We'll now multiply our variables.

4300 x 0.018 x 2 = 154.80

This shows that in 2 years at their interest rate that they have earned 154.80.

We will add the $154.80 to the original borrowed amount of 4300.

$4454.80 will be how much they will owe after 2 years.

To find out the amount in 15 months we'll divide 15 months by 12 and we get 1.25 and now we multiply the numbers again.

4300 x 0.018 x 1.25 = 96.75

They will pay $96.75 in interest within 15 months and we'll add it to the 4300.

$4397 will be how much they will pay after 15 months.