Question

You decide to buy a 60 in 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? Round your answer to
the nearest whole dollar.
A. $5783
B. $5355
C. $6552
D. $4586

Answer 1

The answer is A. $5,783

Explanation:

= $4,500.00(1 + [0.019 * 15])

= $4,500.00(1 + 0.285)

= $4,500.00(1.285)

= $5,782.50

Round $5,782.50 to the nearest whole dollar and you get $5,783