Zebina purchased an entertainment center for $2,798 using a 12-month deferred payment plan with an interest rate of 21.95%. She did not make any payments during the deferment period. What will the total cost of the entertainment center be if she must pay it off within six years after the deferment period?
@ganeshie8

Question

Zebina purchased an entertainment center for $2,798 using a 12-month deferred payment plan with an interest rate of 21.95%. She did not make any payments during the deferment period. What will the total cost of the entertainment center be if she must pay it off within six years after the deferment period?
@ganeshie8

lukecrayonz · Answer

$5,236.80

 $6,284.16

 $2,798.00

 $3,477.88

ganeshie8 · Answer

i am getting 5055.83, which doesnt even exist in your options :| http://www.wolframalpha.com/input/?i=2798%281%2B.2195%2F12%29%5E72+-+x%281-%281%2B.2195%2F12%29%5E72%29%2F%281-%281%2B.2195%2F12%29%29+%3D+0

ganeshie8 · Answer

just check the q once if its corrrect, i may be wrong though - these problems im doing after a long time

lukecrayonz · Answer

@jim_thompson5910

lukecrayonz · Answer

I don't know if it's A or C? Because if you add the 25% from the original price, you get ~C, but if you add the interest compoundly for every year, you get around A.

ganeshie8 · Answer

you mean A or D ? we need to get exact answer. else we wont be confident

lukecrayonz · Answer

Yes yes either A or D