Question

Francine installed a new pool for $11,320 using a 12-month deferred payment plan with an interest rate of 20.67%. what is the balance after the deferment period if payments of $436 are made each month?

Answer 1

$11,320 with its interest rate over the year will be $13659.84. If Francine paid $436 each month for a year he would have paid off $5232 in a year. His debt balance would still be remanding at $8427.84. Francine will have paid off a large amount of his payment plan with the company however he will still be required to spend 18 months or so to pay back what he owes as there was a a 20.67% interest sum added to his payment plan with the company.