alex buys a computer for $1,200 using a credit card with a 10% annual interest rate. if he pays off the…

alex buys a computer for $1,200 using a credit card with a 10% annual interest rate. if he pays off the purchase over one year and the card has no grace period, what is the total cost of the computer including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

alex buys a computer for $1,200 using a credit card with a 10% annual interest rate. if he pays off the purchase over one year and the card has no grace period, what is the total cost of the computer including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

Answer

Explanation:

Step1: Identify the purchase amount and interest rate

The purchase amount is ( $1200 ), and the annual interest rate is ( 10%=0.1 ).

Step2: Calculate the interest

Using the formula for simple - interest ( I = P\times r ), where ( P ) is the principal (purchase amount) and ( r ) is the interest rate. So, ( I=1200\times0.1=$120 ).

Step3: Calculate the total cost

Using the formula ( \text{total cost}=\text{purchase amount}+ \text{interest} ). Substitute ( P = 1200 ) and ( I = 120 ) into the formula: ( \text{total cost}=1200 + 120=$1320 ).

Answer:

($1320)