braxton buys furniture for $2,000 using a credit card with an 18% annual interest rate. if he pays off the…

braxton buys furniture for $2,000 using a credit card with an 18% annual interest rate. if he pays off the purchase over 2 years, and there is no grace period, how much total interest will he pay? formula: total cost = purchase amount + (purchase amount · interest rate)

braxton buys furniture for $2,000 using a credit card with an 18% annual interest rate. if he pays off the purchase over 2 years, and there is no grace period, how much total interest will he pay? formula: total cost = purchase amount + (purchase amount · interest rate)

Answer

Explanation:

Step1: Identify the values

Purchase amount ( P = 2000), Interest rate ( r=0.18), Time ( t = 2) years.

Step2: Calculate the interest

Using the simple - interest formula ( I=P\times r\times t). Substitute ( P = 2000), ( r = 0.18), ( t=2) into the formula: (I=2000\times0.18\times2) First, calculate (2000\times0.18 = 360). Then, (360\times2=720).

Answer:

(720)