Q:

Abdul bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $150 more than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 7% per year, and for the laptop it was 9.5%per year. The total finance charges for one year were $303. How much did each computer cost before finance charges?

Accepted Solution

A:
Answer:The cost of desktop before finance charge was $1750.The cost of laptop before finance charge was $1900.Step-by-step explanation:Let us assume this is a simple interest scenario.Let D be the cost of desktop Let L be the cost of laptopGiven- the laptop cost $150 more than the desktop. So, [tex]L=D+150[/tex] The total finance charge for 1 year is given by : Β [tex]0.07D+0.095L =303[/tex]Substituting the value of L here, we get;[tex]0.07D+0.095(D+150) =303[/tex]=>[tex]0.07D+0.095D+14.25 =303[/tex]=> [tex]0.165D+14.25 =303[/tex]=> [tex]0.165D=303-14.25[/tex]=> [tex]0.165D=288.75[/tex]D = $1750As [tex]L=D+150[/tex] So, [tex]L=1750+150=1900[/tex]L = $1900We can check this :[tex]0.07(1750)+0.095(1900) =303[/tex]=> [tex]122.50+180.50=303[/tex]=> [tex]303=303[/tex]So, the cost of desktop before finance charge was $1750.The cost of laptop before finance charge was $1900.