Question

A furniture store offers a one-year monthly installment plan for a set of living room furniture. The payment for the first month is $65, and then it increases by 5% each month for the rest of the year. How much money is paid after 12 months? Round your answer to the nearest dollar. $780 $819 $1,035 $1,401

Answer 1

Answer:

C.) $1,035

Step-by-step explanation:

Edge 2020

Answer 2

A total of $116.73 needs to pay after 12 months at the rate of 5% so none of the given options will be correct.

What is compound interest?

Compound interest is applicable when there will be a change in principle amount after the given time period.

For example, if you give anyone $500 at the rate of 10% annually then $500 is your principle amount.

Given,

Principle amount = $65

Rate of interest = 5%

Time duration = 12 months.

Compound interest formula

A =  P $[1 +R/100]^{N}$

So,

Total amount =  65 [ 1 + 5/100] power of 12.

Total amount =  $116.73

So the total amount will be $116.73 after 12 months.

For more information about compound interest

brainly.com/question/26457073

#SPJ5