Zoey decides to buy a new smartphone for $800 with her credit card. The yearly interest rate on her credit card is 30%. How much interest will Zoey need to pay on her smartphone purchase if she takes a year to pay it off? How much will her $800 smartphone end up costing her?(1 point)
To calculate the interest Zoey will need to pay on her smartphone purchase, we first need to find out the amount of interest for the $800 purchase at a 30% annual interest rate.
Interest = Principal x Rate
Interest = $800 x 30%
Interest = $800 x 0.30
Interest = $240
So, Zoey will need to pay $240 in interest on her smartphone purchase.
To find out how much her smartphone will end up costing her in total, we need to add the interest to the original purchase price.
Total cost = $800 (purchase price) + $240 (interest)
Total cost = $1040
Therefore, Zoey's $800 smartphone will end up costing her a total of $1040 if she takes a year to pay it off.