James wants to buy a gaming computer priced at $3,774, but he is not able to pay the amount in full. The shop, though, offers purchase plans to help customers afford their products. The annual interest rates on offer are below. Simple interest will be calculated on each loan. Payment Period Interest Rate 12 months 14.8% 24 months 11.6% How much will the shop earn in interest? (Answers to whole dollars) What is the total amount that James will pay for the computer? If the repayments are split evenly over the year, how much will James pay per month?
James wants to buy a gaming computer priced at $3,774, but he is not able to pay the amount in full. The shop, though, offers purchase plans to help customers afford their products. The annual interest rates on offer are below. Simple interest will be calculated on each loan. Payment Period Interest Rate 12 months 14.8% 24 months 11.6% How much will the shop earn in interest? (Answers to whole dollars) What is the total amount that James will pay for the computer? If the repayments are split evenly over the year, how much will James pay per month?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
James wants to buy a gaming computer priced at $3,774, but he is not able to pay the amount in full.
The shop, though, offers purchase plans to help customers afford their products.
The annual interest rates on offer are below. Simple interest will be calculated on each loan.
| Payment Period | Interest Rate |
|---|---|
| 12 months | 14.8% |
| 24 months | 11.6% |
How much will the shop earn in interest? (Answers to whole dollars)
What is the total amount that James will pay for the computer?
If the repayments are split evenly over the year, how much will James pay per month?
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