Abe Wolf bought a new kitchen set at Sears. Abe paid off the loan after 64 days with an interest charge of $12. If Sears charges 9% interest.



What did Abe pay for the kitchen set (assume 360 days

I = PRT

12 = P * 0.09 * 0.1753

12 = 0.01578P

12/0.01578 = P

$760.46 = P

To find out how much Abe paid for the kitchen set, we need to calculate the loan amount plus the interest charge.

First, let's calculate the interest charge for 64 days using the formula:

Interest = Principal * Rate * Time

Where:
Principal = loan amount
Rate = interest rate per period
Time = number of periods (in years)

In this case, the rate is 9% per year, and the time is 64/360 years (since there are 360 days in a year). So, the interest charge can be calculated as:

Interest = Principal * 0.09 * (64/360)

Next, we know that the interest charge is $12. We can set up the equation:

$12 = Principal * 0.09 * (64/360)

Now, we can solve for the principal amount:

Principal = $12 / (0.09 * (64/360))

Simplifying the equation:

Principal = $12 / (0.09 * (8/45))

Principal = $12 / (0.72/45)

Principal = $12 * (45/0.72)

Principal = $12 * 62.5

Principal = $750

Therefore, Abe paid $750 for the kitchen set.