This Question 1 pt 7of14O complete This Quiz 20 pls possib S

This Question: 1 pt 7of14(O complete) This Quiz: 20 pls possib Suppose you buy an appliance costing$2550 at a stor. charging 5% addon interest, you years. Find the total cost for the appliance plus interest The total cost for the appliance plus interest is (Type an integer or decimal rounded to the nearest cent as needed) make a down payment of Sio, and you apebmonMPamers wer e S un Br w to Emer your answer in the answer box p? Go to Pearson

Solution

A = P(1 + r/n)^(nt)

where:

A = the final amount, after \'t\' years
P = principal (starting) amount
r = interest rate
n = number of times interest is compounded per year
t = time, in years

P = 2550 - 800 = 1750
r = 5% = 0.05
n = 12 cuz we compound monthly
t = 4 yrs

A = 1750(1 + 0.05/12)^(12*4)

A = 2136.57 dollars

a) Total amt to be repaid = 2136.57 + 800

2936.57 ----> ANSWER