Your original purchase price was $950.00 plus 5% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You missed the first payment due date. The late fee is $35.00. How much is the interest?

Question

Mathematics

Frank Ochoa

10 August, 11:17

Your original purchase price was $950.00 plus 5% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You missed the first payment due date. The late fee is $35.00. How much is the interest?

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Malakai Harrell · Answer 1

950 + (950*0.05) = 997.5

Interest over one year = $997.5 (12.5) / 100

Interest over one year = $997.5 (12.5) / 100

Interest over one year = $124.6875 which when rounded to two decimals = $124.69