regent business.docx - NAME MATH125 Unit 2 Submission...

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NAME: MATH125: Unit 2 Submission Assignment Answer Form Number Sense, Estimation, and Financial Computations ALL questions below regarding CONSUMER CREDIT and SAVING FOR RETIREMENT must be answered. Show ALL step-by-step calculations, round all of your final answers correctly, and include the units of measurement . Upload this modified Answer Form to the intellipath Unit 2 Submission lesson. Make sure you submit your work in a modified MS Word document; handwritten work will not be accepted . If you need assistance, please contact your course instructor. CONSUMER CREDIT For big purchases, many stores offer a deferred billing option (buy now, pay later) that allows shoppers to buy things now without paying the bill at checkout. 1. Assume you bought new appliances for your newly renovated home. Using the table range values below, choose one total value for the appliances that you have purchased based on the first letter of your last name. Denote this by P . It does not necessarily have to be a whole number. First letter of your last name Possible range values for P A–F $4,000–$4,999 G–L $5,000–$5,999 M–R $6,000–$6,999 S–Z $7,000–$7,999 Type your chosen value here: (4 points) Total value of the appliances, P $6,000 2. The store where you bought these appliances offered you a provision that if you pay the bill within 3 years, you will not be charged any interest for your purchases. However, if you are even a day late in paying the bill, the store will charge you interest for the 3 years. Choose an interest rate between 12% and 16%. Denote this by r, and convert your answer into decimal form. (4 points) Annual interest rate in decimal form, r 0.12
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3. Suppose you forget about the bill and pay it 1 day late. How much interest do you pay if the store charges you simple interest? Because this is a dollar value, round your answer to the nearest cent. (Assume t = 3 years.) Interest, I $2160 Show and explain your work here: (5 points) I = P R T P = $ 6000, R = 12 ,T = 3 years I = 6000 0.12 3 = 2160 4. How much is your total bill—the total value of the appliances plus the interest? Round your answer to the nearest cent.
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