Question

CHECK MY WORK, please? :) 1) Susannah purchased a lawn mower for $1,250 using a six-month deferred payment plan. The interest rate after the introductory period is 25.99%. No down payment is required, but there is a minimum monthly payment of $30. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period? My answer: $1,070.00

Answer 1

you've calculated the remaining balance after six months correctly, but at the beginning of the seventh month the introductory period is over and the interest rate will then be added to the remaining balance of $1,070.

Answer 2

so you need to add 25.99% of 1070 to the remaining balance

Answer 3

Okay, so would the answer be: 1,241.49?

Answer 4

thats not the answer I got, how did you calculate 25.99% of 1070?

Answer 5

It's correct! Balance at the beginning of 7th month is $1,241.49