Answered

If a mechanic uses his credit card to pay for a compressor that costs $477.95 and does not pay on it until the second month, what will the 1.5% monthly interest charge be at the end of the first month?
A. $7.17
B. $12.83
C. $15.43
D. $22.06

Answer :

JeanaShupp

Answer: A. $7.17


Step-by-step explanation:

Given: The cost of compressor P= $477.95

The monthly interest rate = 1.5 %

In decimal, the monthly interest rate r=0.015

Now, The charge be at the end of the first month is given by:-

[tex]I=Pr\\\Rightarrow\ I=477.95\times477.95\\\Rightarrow\ I=7.16925\approx7.17[/tex]

Hence, the charge be at the end of the first month is $7.17.

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