Bart made some home improvements for $6,091 using a six-month deferred payment plan with an interest rate of 23.79%. What is the balance after the deferment period if no payments are made?
A.$6,091.00
B.$6,776.90
C.$7,540.05
D.$6,852.40
My answer is D
the answer is D. i took the quiz.
P = Po + Po*r*t.
P = 6091 + 6091*0.2379*0.5 =
To find the balance after the deferment period, we need to calculate the interest accrued during the six-month deferment period and add it to the original amount.
Step 1: Calculate the interest accrued during the deferment period.
Interest = Principal * Rate * Time
Interest = $6,091 * 0.2379 * (6/12)
Interest = $6,091 * 0.11895
Interest = $724.26
Step 2: Add the interest to the original amount.
Balance = Principal + Interest
Balance = $6,091 + $724.26
Balance = $6,815.26
So, the correct answer is B. $6,776.90 (approximated to the nearest cent).
To find the balance after the deferment period, you need to calculate the total amount due with interest.
First, find the interest amount by multiplying the original amount ($6,091) by the interest rate (23.79%):
Interest = $6,091 x 0.2379 = $1,450.57
Then, add the interest amount to the original amount to find the total amount due:
Total amount due = $6,091 + $1,450.57 = $7,541.57
Since the options provided are rounded to two decimal places, we can see that option C ($7,540.05) is the closest to the total amount due. Therefore, the correct answer is C.