Traci wants to buy rings that cost 50$ each. A jewler is offering a deal in which you buy 1 ring and get the 2nd for 25% off and
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Using the monthly payment formula, it is found that the amount he will have to pay each month is of $649.45.
<h3>What is the monthly payment formula?</h3>It is given by:
In which:
- P is the initial amount.
- r is the interest rate.
- n is the number of payments.
In this problem, considering that the down payment does not count for interest, the parameters are given as follows:
P = 130000, r = 0.0438, n = 30 x 12 = 360.
Then:
r/12 = 0.0438/12 = 0.00365 -> 1+r = 1.00365.
Then the monthly payment is given by:
A = 649.45.
More can be learned about the monthly payment formula at brainly.com/question/2151013
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