Leon's has a "Don't Pay For One Year" event on right now at the store,so you purchase an Italian,hand-stitched leather sofa.You will pay $1,267.99 for the sofa in one year.Leon's charges 18% annual interest compounded monthly on overdue payments.If you forget and don't pay for the sofa until 6 months after payment is due,how much will you pay for the sofa at that time?
A) $1,386.48
B) $1,516.03
C) $1,657.70
D) $1,452.06
E) $1,377.39

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc29_bae5_a768_11925ecb9067_TB2902_00 FV = 1,267.99 × (1.015 11ea7fdb_fc29_e1f6_a768_b7e486b8cc80_TB2902_00 = $1,386.48
Using a financial calculator:
N = 6, I/Y = 1.5, PV = -1,267.99, PMT = 0, cpt FV = $1,386.48

Leon's Has a "Don't Pay for One Year" Event on Right