1) you bought a pair of shoes for $100 on your credit card at a rate of 25%. you decide it is free money and…

1) you bought a pair of shoes for $100 on your credit card at a rate of 25%. you decide it is free money and will not pay off the card for a year. how much did the shoes really cost?

1) you bought a pair of shoes for $100 on your credit card at a rate of 25%. you decide it is free money and will not pay off the card for a year. how much did the shoes really cost?

Answer

Explanation:

Step1: Identify the formula for simple - interest.

The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$100$, $r = 0.25$ (since $25%=0.25$), and $t = 1$ year.

Step2: Calculate the interest.

$I=Prt=100\times0.25\times1 = 25$

Step3: Calculate the total cost.

The total cost $C$ of the shoes is the sum of the principal amount and the interest. So, $C=P + I=100 + 25=$125$

Answer:

$125$