Question

Use the information below to solve the problem Purchase price of article = $495 Down payment = $50 Number of payments = 36 True annual interest rate = 18% Monthly payment amount = ______. (Hint: Calculate the total interest, add it to the amount financed, and then divide by the number of payments.)

Answer 1

Amount financed

495−50

=445

Total interest

(0.18×445×37)÷(2×12)

=123.49

Total paid

445+123.49

=568.49

Monthly payment

568.49÷36

=15.79

Answer 2

Hi :)

Amount financed
495−50
=445
Total interest
(0.18×445×37)÷(2×12)
=123.49
Total paid
445+123.49
=568.49
Monthly payment
568.49÷36
=15.79

Hope it helps