prob 9. if you make monthly payments of $2,500 for 8 years, determine the total payment over the lifetime of…

prob 9. if you make monthly payments of $2,500 for 8 years, determine the total payment over the lifetime of the loan. prob 10. enzo buys a new laptop for $1,000 using his credit card. his credit card has an annual interest rate of 20%. he plans to pay off the purchase over a year, and his credit card has a 30 - day grace period. assuming he starts accruing interest after the grace period and pays off the laptop in equal monthly installments over the year, what will be the total cost of the laptop including interest? formula: total cost = purchase amount+(purchase amount · interest rate)

prob 9. if you make monthly payments of $2,500 for 8 years, determine the total payment over the lifetime of the loan. prob 10. enzo buys a new laptop for $1,000 using his credit card. his credit card has an annual interest rate of 20%. he plans to pay off the purchase over a year, and his credit card has a 30 - day grace period. assuming he starts accruing interest after the grace period and pays off the laptop in equal monthly installments over the year, what will be the total cost of the laptop including interest? formula: total cost = purchase amount+(purchase amount · interest rate)

Answer

Explanation:

Step1: Identify the purchase amount

The purchase amount of the laptop is $1000.

Step2: Calculate the monthly interest rate

The annual interest rate is 20% or 0.2. The monthly interest rate $r=\frac{0.2}{12}$.

Step3: Determine the number of months

The payment period is 1 year or 12 months.

Step4: Use the formula for total cost

The formula is Total Cost = Purchase Amount+(Purchase Amount $\cdot$ Interest Rate). First, find the interest amount. The interest amount $I = 1000\times\frac{0.2}{12}\times12$. $I = 1000\times0.2=200$. The total cost $C=1000 + 200$.

Answer:

$1200$