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? Zoey will need to pay $__ in interest on her smartphone purchase if she takes a year to pay it off. Her $800 smartphone will end up costing her $__.
To calculate the interest Zoey will need to pay on her $800 smartphone purchase, we first need to determine the total interest amount.
Interest = Principal amount x Interest rate
Interest = $800 x 0.30
Interest = $240
So, Zoey will need to pay $240 in interest on her smartphone purchase if she takes a year to pay it off.
Adding the interest to the original cost of the smartphone:
Total cost = Cost of smartphone + Interest
Total cost = $800 + $240
Total cost = $1040
Therefore, Zoey's $800 smartphone will end up costing her $1040.