Melissa used her credit card to buy a $745 refrigerator. She kept the refrigerator for exactly nine years, during which time it consumed an average of $0.19 of electricity every day. Melissa’s credit card has an APR of 16.84%, compounded monthly. Melissa paid off her refrigerator by making identical monthly payments for four years. If she made no other purchases with her card, what percentage of the lifetime cost of the refrigerator did the electricity make up? (Assume that two of the years were leap years, and round all dollar values to the nearest cent.)
Answers
Answered by
1
Answer:
9.39 %
Step-by-step explanation:
EMI = P * (R/100) ( 1 + R/100)ⁿ /( ( 1 + R/100)ⁿ - 1)
P = $745
R = 16.84 %
n = 4 years = 48 Months
EMI = 745 * (0.1684) (1.1684)⁴⁸ /( (1.1684)⁴⁸ - 1)
= 125.53 $
Amount paid in 48 Months = 48 * 125.53
= 6,025.44 $
Number of Days in 9 years including two leap years
= 365 * 9 + 2 = 3285 + 2 = 3287 days
Electricity consumed = 3287 * 0.19 = 624.53$
Total Cost on refrigerator = 6,025.44 + 624.53
= 6649.97 $
percentage of the lifetime cost of the refrigerator the electricity make up
= 100 * 624.53/ 6649.97
= 9.39 %
Similar questions