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 that you must pay $100.00/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 at a 14.25% APR. If you miss a payment in the eighth month, how much interest will you be charged?

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 that you must pay $100.00/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 at a 14.25% APR. If you miss a payment in the eighth month, how much interest will you be charged?
(Please explain how you got the answer)
 $83.13
 $16.63
 $87.28
 $20.78

drew · Accepted Answer

it's 87.28 just took this

Henry · Answer

I = Po*r*t = 875*(0.1425/12)*8 = $83.13

shaun · Answer

its 87.28 i just took it too it is correct it said 11:16am 5/28/2018

alyssa · Answer

YAS ITS 918.75*.1425*8/12 AND DAT EQUALS 87.28 AYYYE LESS GET ITTTTTTTT

Theresa · Answer

it is $87.28