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Volgvan
3 years ago
15

Becky purchased a home entertainment center for $2,254 using an 18-month deferred payment plan with an interest rate of 22.48%.

She did not make any payments during the deferment period. What will Becky's monthly payment be if she must pay off the home entertainment center within three years after the deferment period? Please help I’m confused
Mathematics
1 answer:
Anna [14]3 years ago
3 0

Answer:

$76.69

Step-by-step explanation:

Purchase price = $2254

Interest rate on purchase = 22.48% = 0.2248

Payment time-line = 3 years = (3 * 12) = 36 months

To calculate the Monthly payment :

Total amount to be paid = (Purchase price + interest on the purchase price)

Total amount to be paid :

2254 + (0.2248*2254) = 2760.6992

Monthly payment :

Total amount / number of months

2760.6992 / 36

= 76.686088

= $76.69

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