Maths Help 10 Points!!!?

A department store is having a sale on beds. There is no down payment and no interest charged if you pay in full within the first 6 months. Otherwise, interest of 19.00% per annum is charged on the sale price from the date of purchase. There is a delivery charge of $35.00 and an administration fee of $50.00 to be paid at the time of purchase.
a. If you buy a new bed for $675.00 and pay the full amount in 5 months, how much will you pay?
b. If you buy the same bed and pay in full after one year, how much will you pay?
– if simple interest is charged?
– if compound interest, compounded monthly, is charged?

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2 Responses to “Maths Help 10 Points!!!?”

  1. David says:

    675 + 35 + 50 = 762
    A = P(1 + rt)
    A = 762(1 + .19 * 1)
    A = 762 * 1.19
    A = 906.78
    A = P(1 + r/n)^(nt)
    A = 762(1 + .19/12)^(12 * 1)
    A = 920.0776605748835218362438693208
    A = 920.08
    if you make one payment at the end of 12 months
    if you make monthly payments
    PMT = 762(.19/12) / [1 – (1 + .19/12)^(-12 * 1)]
    PMT = 70.223312607649584540036732181174
    PMT = 70.22
    12 * 70.22 = 842.64 total paid

  2. Pranil says:

    selling price of bed = 675
    cost price = sp – delivery and admn, charges
    = 675 – 35 – 50 = 590
    you have to pay 590 with in 5 months
    after 1 year Amount = P(1 + r/100)^1 by simple interest.
    = 590(1 + 19/100)
    = 590 × 119/100 = 702.1
    after 1 year Amount = P(1 + r/1200)^12 by compound interest.
    = 590(1 + 19/1200)^12
    = 590 × 1.0158.^12 = 712.40
    —–

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