payments will be 244.22 per month for 8 years the interest rate is 7.35% what is the asking price?

Question

anonymous · Answer

Here is a simplified version of your question.

You pay $50/month for 3 months with 10% interest rate.
Total Payment is $50*3 = $150.
3rd month    $$50 = X3 \times 1.1$$$$X3 = 50/1.1 = 45.45$$
2nd month    $$45.45+50 = 95.45 = X2\times1.1$$$$X2 = 95.45\div1.1=86.77$$
1st month    $$86.77+50 = 136.77 = X1$$$$X1 (AskingPrice) = 136.77$$

136.77 is the asking price.  There should be $13.23 of interest to make $150.00.  45.45*0.1 + 86.77*0.1 = 4.55+8.68 = $13.23  .