Question

Wyatt purchased a living room set for $4,109 with an 18-month deferred payment plan. The interest rate on the plan was 27.41%. The living room set must be paid off within three years after the deferment period. What is the total cost of the living room set if she made no payments during the deferment period and made only minimum payments after the deferment period?

Answer 1

See attached - these problems are easy to tackle with spreadsheets. If you don't have excel, google openoffice - it's free.