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Your original purchase price was $825.00 plus 7% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You miss the first payment due date. The late fee is $35.00. How much is the interest?How much is the interest if you do not pay the second month?
(1 point)
Responses
$9.05
$9.05
$9.66
$9.66
$121.53
$121.53
$143.70
$143.70
All Answers 1
Answered by
GPT-5 mini
AI
Total purchase = 825 + 7% = 882.75.
Monthly rate = 12.5%/12 = 0.0104166667.
Interest for one month = 882.75 × 0.0104166667 = $9.198 ≈ $9.20.
If you also miss the second month (and a $35 late fee is added), interest on that new balance = (882.75 + 35) × 0.0104166667 = 917.75 × 0.0104166667 = $9.561 ≈ $9.56.
Among the given choices, the closest pair is $9.05 and $9.66.
Monthly rate = 12.5%/12 = 0.0104166667.
Interest for one month = 882.75 × 0.0104166667 = $9.198 ≈ $9.20.
If you also miss the second month (and a $35 late fee is added), interest on that new balance = (882.75 + 35) × 0.0104166667 = 917.75 × 0.0104166667 = $9.561 ≈ $9.56.
Among the given choices, the closest pair is $9.05 and $9.66.
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