Jackson purchased some power tools totaling $1543 using a six month deferred payment plan with and 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.

A.$1543.00
B.$1735.63
C.$2197.44
D.$2746.80

Question

Jackson purchased some power tools totaling $1543 using a six month deferred payment plan with and 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.

A.$1543.00
B.$1735.63
C.$2197.44
D.$2746.80

anonymous · Answer

$$TotalCost=InitialCost(1+i)^n$$
where i is the interest rate and n is the number of months