Questions: What is her deadline for paying no interest in a leap year? A. March 27 B. March 30 C. March 29 D. March 28 Is the finance company likely to use exact or ordinary interest and why? A. Money lenders typically use exact interest (365 days per year vs. 360 days per year) for loans to require slightly lower interest. B. Money lenders typically use ordinary interest (360 days per year vs. 365 days per year) for loans to require slightly higher interest. C. Money lenders typically use ordinary interest (360 days per year vs. 365 days per year) for loans to require slightly lower interest. D. Money lenders typically use exact interest (365 days per year vs. 360 days per year) for loans to require slightly higher interest. 3. If Jillian takes the 90 days same as cash and pays within 90 days, what is her payoff amount? square square (Round to the nearest cent as needed.)

What is her deadline for paying no interest in a leap year?
A. March 27
B. March 30
C. March 29
D. March 28

Is the finance company likely to use exact or ordinary interest and why?
A. Money lenders typically use exact interest (365 days per year vs. 360 days per year) for loans to require slightly lower interest.
B. Money lenders typically use ordinary interest (360 days per year vs. 365 days per year) for loans to require slightly higher interest.
C. Money lenders typically use ordinary interest (360 days per year vs. 365 days per year) for loans to require slightly lower interest.
D. Money lenders typically use exact interest (365 days per year vs. 360 days per year) for loans to require slightly higher interest.
3. If Jillian takes the 90 days same as cash and pays within 90 days, what is her payoff amount?
square square (Round to the nearest cent as needed.)

Transcript text: What is her deadline for paying no interest in a leap year? A. March 27 B. March 30 C. March 29 D. March 28 Is the finance company likely to use exact or ordinary interest and why? A. Money lenders typically use exact interest ( 365 days per year vs. 360 days per year) for loans to require slightly lower interest. B. Money lenders typically use ordinary interest ( 360 days per year vs. 365 days per year) for loans to require slightly higher interest. C. Money lenders typically use ordinary interest ( 360 days per year vs. 365 days per year) for loans to require slightly lower interest. D. Money lenders typically use exact interest ( 365 days per year vs. 360 days per year) for loans to require slightly higher interest. 3. If Jillian takes the 90 days same as cash and pays within 90 days, what is her payoff amount? $\$ \square$ $\square$ (Round to the nearest cent as needed.)

Solution

Solution Steps

To solve the given questions, we need to:

Calculate the deadline for paying no interest in a leap year by adding 90 days to the purchase date.
Determine whether the finance company is likely to use exact or ordinary interest based on typical practices.
Calculate the payoff amount if Jillian pays within 90 days, which would be the purchase price plus sales tax.

Step 1: Calculate the Deadline for Paying No Interest

To find the deadline for paying no interest, we add 90 days to the purchase date of December 29, 2020. Since 2020 is a leap year, the deadline is March 29, 2021.

Step 2: Determine the Likely Interest Method

Money lenders typically use ordinary interest, which is calculated using 360 days per year, to require slightly higher interest. Therefore, the likely interest method is ordinary interest.

Step 3: Calculate the Payoff Amount if Paid Within 90 Days

The purchase price of the printer is \$8,750. The sales tax rate is $6.5\%$. The sales tax is calculated as:

\[ \text{Sales Tax} = 8750 \times 0.065 = 568.75 \]

The total payoff amount is the sum of the purchase price and the sales tax:

\[ \text{Payoff Amount} = 8750 + 568.75 = 9318.75 \]