Question

Your parents purchase a computer for $1,257.00 plus 6% sales tax. They decide to finance it through the store’s 0% program for 6 months. The terms state that they pay nothing until the 6 months are over. When they receive the bill, they forget to pay it and are assessed a late fee of $45.00 plus the interest accrued to that point at a 16.75% APR. What is the accrued interest after 6 months?
(1 point)
Responses

$109.02
$109.02

$115.56
$115.56

$223.18
$223.18

$111.59

Answer 1

Total cost = $1,257 × 1.06 = $1,332.42.
Interest for 6 months = $1,332.42 × 0.1675 × 0.5 = $1,332.42 × 0.08375 = $111.59.

Answer: $111.59