1. Melissa wants to buy a new stereo system for $850 at Surround Sound City. Surround Sound City will finance Melissa's purchase (they'll loan her the money) at 12.5% (annual rate) for three years. a) How much interest will Melissa pay on the loan? | = P = |= PRT T = b) How much will the stereo system end up costing her (how much does she repay)? PRT

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