2
AssignmentMultiple Choice

Bankruptcy

Question 2 • FL-2102371-Personal Finance and Money Management

Kristofer is shopping for a new laptop and will receive a 20% discount if they sign up for the store credit card with a daily interest rate of only 0.035%. The laptop costs $699 plus 6% sales tax. They do not read the fine print on the credit card application and pay the full balance 30 days later. Kristofer is charged interest plus a $30 late fee. How much did their laptop really cost?

Answer
A
$489.13
B
$598.46
C
$628.98
D
$705.99

Explanation

The 20% discount reduces the $699 price to $699 × 0.80 = $559.20. With 6% sales tax, the balance is $559.20 × 1.06 = $592.752. Interest for 30 days is $592.752 × 0.00035 × 30 = about $6.22; adding the $30 late fee gives about $628.98. The correct choice is C, $628.98.

AI-written and checked against the verified answer.

Previous
Next