If I financed a computer that costs $1500. If the simple interest rate is 21%, how much will the I owe after one month if no payments are made?
To calculate the amount you will owe after one month, we first need to find the amount of interest that will be charged during that period. Here's how you can calculate it:
Step 1: Convert the interest rate to a decimal by dividing it by 100: 21% รท 100 = 0.21.
Step 2: Calculate the interest for one month by multiplying the principal amount by the interest rate: $1500 x 0.21 = $315.
Step 3: Add the interest to the principal to find the amount you will owe: $1500 + $315 = $1815.
Therefore, if no payments are made after one month, you will owe $1815.