4
InstructionMultiple Choice

Long Term Purchases

Question 4 • 26-27 Ignite Technical Math-Financial Math - MA2007

Brian bought a new air conditioning unit on his credit card. The unit had a base price of $435. Brian made no other purchases on his credit card. Brian’s credit card has an interest rate of 9.4%, compounded monthly, and Brian paid off the balance by making monthly payments for a year and a half. If the sales tax in Brian’s area is 8.51%, how much did Brian pay in total? (Round all dollar values to the nearest cent.)

Answer
A
$472.02
B
$468.00
C
$496.32
D
$507.96

Explanation

First add sales tax: $435 × 1.0851 = $472.02, the balance Brian financed. The monthly interest rate is 0.094 ÷ 12, and over 18 months the payment is about $28.22 per month using the fixed-payment loan formula. Multiplying by 18 gives a total of about $507.96, so the correct choice is $507.96.

AI-written and checked against the verified answer.

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