James wants to buy a gaming computer priced at $3,774, but he is notable to pay the amount in full.The shop, though, offers purchase plans to help customers afford theirproducts.The annual interest rates on offer are below. Simple interest will becalculated on each loan.Payment PeriodInterest Rate12 months14.8%24 months11.6%James chooses to go with the 12-month plan.How much will the shop earn in interest? (Answers to whole dollars)24What is the total amount that James will pay for the computer?If the repayments are split evenly over the year, how much will James payper month?%24%24

Price of the computer = $3,774 Time period = 12 Months Interest rate = 14.8%

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.

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.

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

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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%
James chooses to go with the 12-month plan.
How much will the shop earn in interest? (Answers to whole dollars)
24
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?
%24
%24

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