Suppose that you purchase a new MacBook for school. Apple will charge you $1,149 for the laptop and give you a $100 gift card that you will apply to your purchase. You will pay $1049 for the laptop. You decide to finance using a new Apple credit card. Assume Apple will offer you the card with 24% annual percentage rate(APR) and you decided to pay off the purchase with equal monthly payments over the next 2 years, starting one month of the date of purchase.
a.) What is the monthly payment associated with your new laptop? (nearest dollar rounded). Show calculation. Convert APR into monthly percentage rate.
b.) Suppose your uncle offers to buy the laptop for you(he will pay $1,199 since he is not a student) and let you pay him back with payments of $56.44 at the end of each month for the next 24 months. What ANNUAL interest rate is implicit in your uncle's offer?