Question

Amanda financed a new living room set at the furniture store for $2,700. The store offered no interest for 6 months or 20 percent annually if the balance was not paid in full prior to the end of the interest free period. How much interest will she need to pay if she lets the account go for 6 months and 1 day before paying the bill?

Answer 1

She will need to pay $269.36 in interest if she lets the account go for 6 months and 1 day before paying the bill.

Explanation:

Given that Amanda financed a new living room set at the furniture store for $ 2,700, and the store offered no interest for 6 months or 20 percent annually if the balance was not paid in full prior to the end of the interest free period, to determine how much interest will she need to pay if she lets the account go for 6 months and 1 day before paying the bill, the following calculation must be performed:

((2,700 x 0.2) / 365) x 182 = X

(540/365) x 182 = X

1.48 x 182 = X

269.36 = X

Therefore, she will need to pay $ 269.36 in interest if she lets the account go for 6 months and 1 day before paying the bill.