Suppose you forget about the bill and pay it 1 day late. How muchinterest do you pay if the store charges yousimple interest? Because this is a dollar value, round your answer to the nearest cent. (Assumet= 2 years.)

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Question
1: CONSUMER CREDIT

For big
purchases, many stores offer a deferred billing option (buy now, pay later) that
allows shoppers to buy things now without paying the bill at checkout.

1. Assume you bought new appliances for your
   newly renovated home.Based on the first
   letter of your last name, choose the total value of the appliances that you
   have purchased. This will be denoted byP. It does not necessarily have to
   be a whole number.

First letter of your last name	Possible values forP
A–F	$5,000–$5,999
G–L	$6,000–$6,999
M–R	$7,000–$7,999
S–Z	$8,000–$8,999

Total value of the appliances,P

$

1. The store where you bought these appliances
   offered you a provision that if you pay the bill within 2 years, you will not
   be charged any interest for your purchases.
   However, if you are even a day late in paying the bill, the store will
   charge you interest for the 2 years.

   Although the annual interest rate is based on your credit
   worthiness, disregard this on this assignment and instead,choose an interest rate between 22% and 26%. This will be
   denoted byr.

Annual Interest ratein decimal form,r

1. Suppose you forget about the bill and pay it 1
   day late. How muchinterest do you
   pay if the store charges yousimple interest?
   Because this is a dollar value, round your answer to the nearest cent. (Assumet= 2 years.)

2. How much is your total bill—the total value of the appliances plus the interest? Round
   your answer to the nearest cent.

3. How much is your total bill if, instead, the
   store charges you interest that is compounded daily? Use 6 digits on your
   intermediate calculations, and round your final answer to the nearest cent.
   (Assumet = 2 years.)