liam purchases a new smartphone for $700 using his credit card, which has an annual interest rate of 18%. he…

liam purchases a new smartphone for $700 using his credit card, which has an annual interest rate of 18%. he plans to pay off the phone over 10 months. the credit card offers a grace period of 25 days. if liam makes his first payment within the grace period, what is the total cost of the smartphone including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

liam purchases a new smartphone for $700 using his credit card, which has an annual interest rate of 18%. he plans to pay off the phone over 10 months. the credit card offers a grace period of 25 days. if liam makes his first payment within the grace period, what is the total cost of the smartphone including interest? formula: total cost = purchase amount + (purchase amount · interest rate)

Answer

Explanation:

Step1: Calculate the interest

Since Liam pays within the grace period, the interest is (0).

Step2: Calculate the total cost

Using the formula (total\ cost = purchase\ amount+(purchase\ amount\cdot interest\ rate)). Substitute (purchase\ amount = 700) and (interest\ rate = 0) into the formula. (total\ cost=700+(700\times0)) (total\ cost = 700)

Answer:

(700)