Can someone help me, im confused?
Fiona installed a new pool for $9,940 using a 12-month deferred payment plan with an interest rate of 22.53%. What is the balance after the deferment period if payments of $397 are made each month?

$7,761.84

$9,940.00

$5,176.00

$12,425.84

Question

Can someone help me, im confused?  
Fiona installed a new pool for $9,940 using a 12-month deferred payment plan with an interest rate of 22.53%. What is the balance after the deferment period if payments of $397 are made each month?

$7,761.84

$9,940.00

$5,176.00

$12,425.84

anonymous · Answer

okay the interest rate is not used until after the 12 months so you would multiply the 397 by 12

anonymous · Answer

and then subtract from the original balance

anonymous · Answer

Thank you so much!

anonymous · Answer

welcome i usually hate word problems