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Andru [333]
3 years ago
6

Joe Summers buys a gas grill and accessories. The cost, including tax, amounts to $850.00. Joe finances the grill over 12 months

after making a $150 down payment. The true annual interest rate is 14%. What are Joe's monthly payments (principal plus interest)?
To the nearest penny, c = $.
Total of payments = amount financed + c = $.
Total of payments ÷ number of payments = monthly payment = $
Mathematics
1 answer:
Anettt [7]3 years ago
7 0

Answer:

$66.5

Step-by-step explanation:

The cost, including tax, amounts to $850.00.

Down payment =$150

Amount after paying down payment = $850-$150=$700

Interest rate = 14 %

So, interest on $700 = \frac{14}{100} \times 700 =98

So, c = $98

Total payment = amount financed + c  = 700+98=$798

Now Joe finances the grill over 12 months

So, no. of payments = 12

Now Monthly payment = Total of payments ÷ number of payments

                                        =798 ÷ 12

                                        =$66.5

Hence Joe's monthly payments (principal plus interest) is $ 66.5

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