Question
Sara is looking to purchase a washer and dryer. The Saturday newspaper had an advertisement for a local appliance store offering90 days, same ascash! financing.
Sara is looking to purchase a washer and dryer. The Saturday newspaper had an advertisement for a local appliance store offering"90 days, same ascash!" financing. Sara asked how the financing worked and learned that she could pay for the washer and dryer any time during the first 90 days for the purchase price plus sales tax. If she waitedlonger, she would have to pay the purchaseprice, plus salestax, plus 26.8
26.8% annual simple interest for the first 90days, plus 4
4% simple interest per month(or any part of amonth) on the unpaid balance after 90 days.Together, the washer and dryer cost $599
599 plus the 8.25
8.25% sales tax. Sara knew that her tax refund from the IRS would be $900
900, so she bought the washer and dryer confident that she could pay off the balance within the 90 days. Answer parts 1. through 4.
1. If Sara pays off the balance within 90days, how much will shepay?
$
648.42
648.42 total to pay within 90 days
(Round to the nearest cent asneeded.)
3. IfSara's IRS refund does not come until April1, what is her payoffamount? (Assume ordinary interest and anon-leap year.)
$
^need this answer
- How much did it cost her to pay off this loan 18 days late? what annual simple interet rate does this amonut to?
and this^
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