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?
(1 point)
Responses

$54.27
$54.27

$36.30
$36.30

$56.98
$56.98

$39.01

Answer 1

Purchase with tax: 755(1.05) = 792.75.
Interest for 5 months at 17.25% APR: 792.75 × 0.1725 × (5/12) = 56.98.

Answer: $56.98