No Payments For The First Six Months!

You just bought a new tablet computer for $\$500$ including tax. There are no required payments for six months but the company does charge $30\%$ annual interest, compounded monthly, on any unpaid balance.

1. What is the monthly multiplier?

   Hint (a):

   Annual is yearly, so $30\%$ per year is what percent each month?

   Answer (a):

   $1.025$

2. If you do not make any payments for six months, how much will you now owe for your new tablet?

   Hint (b):

   Review the Math Notes box in Lesson 7.1.3.

   Answer (b):

   $\$579.85$