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Lesechka [4]
3 years ago
15

Cheryl purchased a pool for $8,960 using a six-month deferred payment plan with an interest rate of 27.35%. She did not make any

payments during the deferment period. What will Cheryl's monthly payment be if she must pay off the pool within six years after the deferment period?
Mathematics
1 answer:
kotykmax [81]3 years ago
4 0
First find the amount at the end of the deferment period using the formula of the future value of a compound interest
A=8,960×(1+0.2735÷12)^(6)
A=10,257.25

Use the amount we found as the present value to find the monthly payment by using the formula of the present value of an annuity ordinary to get
PMT=10,257.25÷((1−(1+0.2735
÷12)^(−12×6))÷(0.2735÷12))
=291.27 ....Answer
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