Question

You purchase a computer for $755.00 plus 5% sales tax. You decide to finance it through the store's 0% program for six months. The terms state you must pay $50.00/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 on the initial amount at a 17.25% APR. If you miss a payment in the fifth month, how much interest will you be charged?
Responses

$54.27
$54.27 - no response given

$36.30
$36.30 - no response given

$56.98
$56.98 - no response given

$39.01

Answer 1

Purchase + tax = 755(1.05) = $792.75.
Monthly interest rate = 17.25%/12 = 0.014375.
Missed in month 5 → interest for 5 months = 792.75 × 0.014375 × 5 = $56.98.

Answer: $56.98.