Salina purchased a dining room set for $1,730 using a 12-month deferred payment plan with an interest rate of 23.45%. She did not make any payments during the deferment period. What will the total cost of the dining room set be if she must pay off the dining room set within two years after the deferment period?

Question

anonymous · Answer

I just need help setting it up

akashdeepdeb · Answer

Okay so the payment plan company is asking for the money along with some simple interest with 
rate = 0.2345
Principal = 1730
Time = 2 years!
Now for setting it up and finding the interest!
SI = P*R*T
Find the Amount she has to pay by  
Principal + SI
Understood? :)