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# (rounded to the nearest cent)

The equation for simple intrest is:

#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#, R = #1.5# and T = #1. 25# (since #15# months is #1. 25# years)

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

#I=(4500xx1. 9xx1.25)/100#

#=$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#

Round your answer to the nearest cent

#~~$4606.88#