Question

A computer is bought for $1,200 and a deposit of $300 is paid. The outstanding balance, plus 10% interest on the balance must be repaid in 4 quarterly installments. How much is each monthly installment?

Answer 1

Computer= $1200

You: makes $300 deposit


Computer= $900

You pay 10 percent interest and pay 4 quarterly installments.

*This means that you pay 4 times in a year. You pay once every 3 months + interest. So basically you pay will need to pay four times in one year to fully pay back your debt.

Interest-money paid regularly at a certain rate for the use of money lent, or for delaying the repayment of debt

You would pay $236.36 per every 3 months

Paying off $900 on 10% interest would mean that you pay a total of $945.45 in the time frame of a year (4 quarterly installments).