Your original purchase price was $825.00 plus 7% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You miss the first payment due date. The late fee is $35.00. How much is the interest? (1 point) Responses $103.13 $103.13 $110.34 $110.34 $8.59 $8.59 $9.20
To find the interest, we first need to calculate the amount after taxes.
$825.00 + 7% sales tax = $881.75
Since the interest is waived for the first 12 months, the interest is only applicable after the first 12 months if you miss a payment.
The interest rate is 12.5% APR, which means the monthly interest rate is 12.5%/12 = 1.04%.
To find the interest, we need to calculate the number of months you missed the payment. Since it is not specified, let's assume you missed one payment.
Interest = $881.75 * 1.04% = $9.18
Therefore, the interest is $9.18.