a computer cost $2910, kate agrees to pay a %15 per year finance charge on the cash price. If Kate contract to pay 18 months, how much will Kate pay each month? HELP!

Question

anonymous · Answer

Do you know which formula to apply?

anonymous · Answer

i have no idea, i am confused because usually it tells you the finance price

anonymous · Answer

Monthly pmt = (PVA * r/12 ) / [ 1 - ( 1 + r/12 ) ^ ( -12 t)

anonymous · Answer

wah, thats even more difficult to read than the problem,lol

anonymous · Answer

I am having problems putting that stuff in my calculator and getting the right answer, I was using the chart they gave me

anonymous · Answer

If you already known, it should be understandable :)

anonymous · Answer

Let me calculate this one!

anonymous · Answer

2910x.015/12

anonymous · Answer

(PVA * r/12 ) / [ 1 - ( 1 + r/12 ) ^ ( -12 t)=(2910x.015/12)/1-(1+.015/12)^12?

anonymous · Answer

= 181.54 monthly pmt

anonymous · Answer

my original answer was quadruple that, :/ ugh. *hits myself in the cabeza

anonymous · Answer

beginning to think if all my other answers were corrct, much thanks

anonymous · Answer

If you multiply the result by 18mos = $3,267
That make sense, since the lump sum isn't too larger compare to the origional one!

anonymous · Answer

So now are you sure to know which formula to apply?

anonymous · Answer

where did  that 3267 come from? your talking to a dunce mathematician :)

anonymous · Answer

Just a way to test if your answer rational by multiply back the monthly pmt * 18 months

anonymous · Answer

but its not the same as 2910?

anonymous · Answer

if i calculate 2910+15% i get 3346.5

anonymous · Answer

Of course the loan pmt must be larger than the orgional price!
Nah, I woudn't want to confuse you any more!
Just memorize the formula!

anonymous · Answer

haha ok

anonymous · Answer

Math people sometimes crazy, you know :P

anonymous · Answer

the answer was 198.04