You decide to buy a 60 in plasma TV. You borrow $4300 from the electronics store at1.8% per month simple interest, with no payments due for 2 years from the date of purchase. How much will you owe on the loan after 15 months?

Answer 1

so your debt would have grown to ...

4300(1.018)^15 = 5619.38

don't you love those "no payments for 2 years deals" ?
They always forget to tell you there is still interest involved.

Answer 2

not quite. It was simple interest, not compound.

4300(1+.018*15) = 5461.00

Answer 3

Thank you Steve.