Question

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 you pay nothing until the 12 months are over. When you receive the bill, you forget to pay it and are assessed a late fee of $39.00 plus the interest accrued to that point on the initial amount at 14.25% APR. How much interest will you be charged?
(1 point)
Responses

$130.25
$130.25

$136.48
$136.48

$130.92
$130.92

$124.69

Answer 1

Total with tax = $875 × 1.05 = $918.75.
Interest for 12 months = $918.75 × 0.1425 = $130.921875 ≈ $130.92.

Answer: $130.92