You decide to buy a 60 in plasma-screen tv. you borrow $4300 from the electronics store at 1.8% 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? round your answer to the nearest whole dollar.

Question

Mathematics

Tobias Mejia

6 November, 01:08

You decide to buy a 60 in plasma-screen tv. you borrow $4300 from the electronics store at 1.8% 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? round your answer to the nearest whole dollar.

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Matthew Glover · Answer 1

4300 is your principal

1.8% interest rate (change it into decimal form; 0.018)

2 years is our time

We'll now multiply our variables.

4300 x 0.018 x 2 = 154.80

This shows that in 2 years at their interest rate that they have earned 154.80.

We will add the $154.80 to the original borrowed amount of 4300.

$4454.80 will be how much they will owe after 2 years.

To find out the amount in 15 months we'll divide 15 months by 12 and we get 1.25 and now we multiply the numbers again.

4300 x 0.018 x 1.25 = 96.75

They will pay $96.75 in interest within 15 months and we'll add it to the 4300.

$4397 will be how much they will pay after 15 months.