Question

Simon bought furniture for his apartment for a total of $2,900. The store financed his purchase for 18 months at 0% interest, and there is no minimum monthly payment amount. Simon decides to pay nothing the first month, and then $180 per month after the first month towards the total until it's paid off.

Answer 1

Complete question :

Simon bought furniture for his apartment for a total of $2,900. The store financed his purchase for 18 months at 0% interest, and there is no minimum monthly payment amount. Simon decides to pay nothing the first month, and then $180 per month after the first month towards the total until it's paid off.

Set up an equation such that Tn represents the total amount Simon still owes after n months.

Calculate the amount Simon still owes at the end of one year after his purchase.

Answer:

Tn = 2900 - 180(n - 1)

Tn = $920

Step-by-step explanation:

Cost of furniture = $2900

Assume no interest

Amount paid in first month = 0

Constant amount to be paid after first month = $180

T amount owed after n, months :

Tn = Cost of furniture - amount to be paid per month * (Number of months - 1)

Hence,

Tn = 2900 - 180(n - 1)

Amount owed at the end of one year after purchase :

Tn = 2900 - 180(12 - 1)

Tn = 2900 - 180(11)

Tn = 2900 - 1980

Tn = $920