Question

Sarah purchased a swing set for $1,450 using a six-month deferred payment plan. The interest rate after the introductory period is 19.99%. No down payment is required, but there is a minimum monthly payment of $20. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?

Answer 1

Total payments during 6 month introductory period = 20 * 6 = $120
Balance at beginning of 7th month = $1,450 - $120 = $1,330

Answer 2

Thanks!

Answer 3

You're welcome :)