Question

Modern Appliances offers a one-year monthly installment plan for a refrigerator. The payment for the first month is $75, and then it increases by 6% each month for the rest of the year. Which expression can be used to find the total paid in the first 12 months?

Answer 1

75(1-1.06^12/1-1.06) !!

Answer 2

Answer: Expression used to find the total paid in the first paid in the first 12 months is $75(1+\frac{0.06}{12})^{12}=\ 79.62$

Step-by-step explanation:

Since we have given that

Payment for the first month = $75

Rate of interest increases each month = 6%

We need to find the total paid in the first 12 months.

So, Amount paid in the first 12 months will be

$P(1+\dfrac{r}{n})^{nt}\\\\=75(1+\dfrac{6}{12\times 100})^{12}\\\\=75(1+\dfrac{0.06}{12})^{12}\\\\=75(1+0.005)^{12}\\\\=75(1.005)^{12}\\\\=79.62$

Hence, expression used to find the total paid in the first paid in the first 12 months is $75(1+\frac{0.06}{12})^{12}$