You decide to buy a 60 inch plasma-screen TV. You borrow $4500 from the electronics store at 1.9% 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?

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You decide to buy a 60 inch plasma-screen TV. You borrow $4500 from the electronics store at 1.9% 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?

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Answer 1 · 2017-10-05T07:48:29

$$ 4606.88$ $$4606.88$ (rounded to the nearest cent)

Explanation:

The equation for simple intrest is:

$I = \frac{P R T}{100}$ $I=(PRT) /100$

Where:
P = Principle (the amount that is going to have intrest on it)
R = Rate of interest
T = Time in years

Since you did not pay anything since the date of purchase, P = $$ 4500$ $$4500$ , R = $1.5$ $1.5$ and T = $1.25$ $1. 25$ (since $15$ $15$ months is $1.25$ $1. 25$ years)

Plugging all the numbers into the simple interest equation... You get:

$I = \frac{4500 \times 1.9 \times 1.25}{100}$ $I=(4500xx1. 9xx1.25)/100$

$= $ 106.875$ $=$106.875$

Don't forget to add your principle back in, as this is only the "extra" money coming from the intrest

$$ 106.875 + $ 4500 = $ 4606.875$ $$106.875+$4500=$4606.875$

Round your answer to the nearest cent

$\approx $ 4606.88$ $~~$4606.88$

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You decide to buy a 60 inch plasma-screen TV. You borrow $4500 from the electronics store at 1.9% 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?

1 Answer

Explanation:

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