Question

Susannah purchased ski equipment for $978 using a six-month deferred payment plan. The interest rate after the introductory period is 21.45%. A down payment of $150 is required as well as a minimum monthly payment of $75. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?

Answer 1

$978 - $150 = $828
Apply Compound interest: Balance at the beginning of the seventh month After minimum payment: $ 470.867