1) Derek has a credit card with an interest rate of 11.05%, compounded monthly. He used his credit card to buy a new sofa, which cost $670 including tax. Derek paid off his balance by making equal monthly
payments for three years. Assuming that he had no other purchases on his credit card, how much did
Derek pay for the sofa in total? (Round all dollar values to the nearest cent.)
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**2. Megan's TV had a base price of $189 and the sales tax was 6.88%. Over the next four years, the TV
consumed an average of $0.06 of electricity every day. It also needed repairs twice, costing $29 each
time. After four years, Megan got a new TV. What was the lifetime cost of Megan's TV? (Remember that
one in every four years is a leap year.)
a.
b.
$357.68
$318.66
$347.66
$351.65
C.
d.