Question

1. carl purchased a $354 stereo at worst buy. he paid $15 at the time of purchase and agreed to pay the balance in 12 equal monthly payments. the finance charge was 15% simple interest. what was the amount of each payment? state your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word “dollars” with your response. formula 0.5 points answer 2. susan buys a new cell phone priced at $163 and agrees to pay for it over 12 months with 10% simple interest. what is her monthly payment? state your answer in terms of dollars, rounded to the nearest cent, but do not include a $ sign or the word “dollars” with your response. formula 0.5 points answer

Explanation:

Step 1: Calculate the total amount to be paid for Susan's phone

The formula for simple - interest is $A = P(1+rt)$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, $P = 163$, $r=0.1$ (since 10% = 0.1), and $t = 1$ (1 year for 12 - month payment period).
$A=163\times(1 + 0.1\times1)=163\times1.1 = 179.3$

Step 2: Calculate the monthly payment

Divide the total amount $A$ by the number of months $n = 12$.
Monthly payment $=\frac{179.3}{12}\approx14.94$

Step 1: Calculate the balance amount for Carl's stereo

The principal amount of the stereo $P = 354$, and he paid $15$ at the time of purchase. So the balance $B=354 - 15=339$

Step 2: Calculate the total amount to be paid with interest

The annual interest rate $r = 0.15$ (since 15%=0.15) and $t = 1$ year. Using the simple - interest formula $A=B(1+rt)$, we have $A = 339\times(1+0.15\times1)=339\times1.15=389.85$

Step 3: Calculate the monthly payment

Divide the total amount $A$ by the number of months $n = 12$.
Monthly payment $=\frac{389.85}{12}\approx32.49$

Answer:

14.94