About a year and a half ago, your parents purchased some appliances at a major retailer, taking advantage of a "no payments and no interest offer. Under the agreement, for 18 months no interest would accrue on the loan. The value of the appliances (and therefore the amount of the original loan) was $3200. The stated interest rate on the loan (the retailer's credit card) was a 26.49% APR (with monthly interest compounding). Unfortunately, your parents did not notice the fine print of the agreement that specified the consequences of not paying off the entire balance before the 18-month period ended. The "deferred interest clause of the agreement stated that if the balance was not paid in full prior to the end of the 18-month period, interest would be charged from the purchase date. How much interest would be added to the balance of the account if your parents failed to pay it off in time - say, for example, if they were to pay it off just after the 18-month period had ended?

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