Question

Paul paid $663 for a new freezer. He paid for the freezer with his credit card, which has an interest rate of 15.28% compounded monthly, and made monthly payments for five years until the freezer was paid off. He kept the freezer for seven years, and it used an average of $2.14 of electricity per week. Paul made no other purchases or payments with his credit card until the freezer was paid off. Between the interest and the electricity, which component of the lifetime cost of the freezer was greater, and how much greater was it? (Round all dollar values to the nearest cent.)

Answer 1

a.
The interest cost $106.60 more than the electricity.
b.
The interest cost $173.24 more than the electricity.
c.
The electricity cost $489.76 more than the interest.
d.
The electricity cost $115.96 more than the interest.

Answer 2

any help is greatly appreciated!

Answer 3

Hmm........let me look at this.

Answer 4

This is veryyyy confusing.

Answer 5

thats what im saying haha xD

Answer 6

this is confusing but you need to take it step by step

Answer 7

so lets know how much is the interest rate

Answer 8

yeah ok

Answer 9

so 15.28 monthly, do i do $663 x .1528?

Answer 10

@sleepyjess

Answer 11

yap do that

Answer 12

i get 101.3064

Answer 13

is that per month, so times 12 and then times 5? no i think the number would get too big like that

Answer 14

thats his monthly bill

Answer 15

so now what?

Answer 16

its a

Answer 17

ok i'll trust you on that, thanks!