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olchik [2.2K]
3 years ago
7

Matthew purchased a washer and dryer for $2,885 using an 18-month deferred payment plan with an interest rate of 26.12%. What is

the balance after the deferment period if payments of $85 were made each month?
$1,355.00
$2,720.86
$2,885.00
$4,250.86
Mathematics
1 answer:
-Dominant- [34]3 years ago
3 0
For a deferred payment plan no interest is accrued for the deferment period.

If $85 is made each month, then in 18 months, 18 * 85 = $1,530 must have been paid off from the balance owed.

Thus, the remaining balance after the deferment period is $2,885 - $1,530 = $1,355.
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