Jackson purchased some power tools totaling $1,543 using a six month deferred payment plan with an interest rate of 23.76%. He did not make any payments during the deferment period. What will the total cost of the power tools set be if he must pay off the power tools within two years after the deferment period?

Question

anonymous · Answer

i got 1735.63

asapbleh · Answer

Well, the principal is $1543, and there are 24 months in 2 years, so you times 1,543 by the rate of .2376 and you will get the interest of $1543=$367. Remember there are 24 months so, you times that by 24=$8,808. 

So $1543+$8,808=$10,351 that he has to pay in total. 

If I made a mistake or not clear, feel free to adjust anything!

anonymous · Answer

well here are the answer choices so i don't think that's right

$1,543.00

$1,735.63

$2,197.44

$2,746.80

asapbleh · Answer

oooo, lol, i forgot that it was a six month payment, i thought it was just a monthly payment. haha ty for correcting me!

anonymous · Answer

ok so its monthly  compounding interest so i got 1735.63 being due after the 6 month period but is more charged over the 2 years it has to be payed off after the deferment period.....if that makes any sense

asapbleh · Answer

Well I think that it is since that is a 6month interest payment.

So his principal is $1543. ea/ 6mths he has to pay 23.76% of his principal. 

so its 1543(0.2376)=$367 for every six months.

and then there are 4 6months in two years, therefore its:

1543+1,466=3,009.46

asapbleh · Answer

sigh~ it gets so confusing in application math problems. Im sorry that i could'nt help you.

anonymous · Answer

it ok thanks for the help

anonymous · Answer

i chose  $1,735.63 and it was wrong.