Question

Joan is buying a new refrigerator for $1,500. The distributor is charging her an annual interest rate of 10.7% and is using the add-on method to compute monthly payments. If she pays off the loan in 24 months, what are her monthly payments? If she makes a down payment of $300, how much will his monthly payments be? Do not round until the final answer. Then, round to the nearest cent

0A $151.75; $15.18
B $135.88; $15.18
C $75.88; $60.70
D $151.75; $60.70

Answer 1

A $151.75; $15.18
B $135.88; $15.18
C $75.88; $60.70
D $151.75; $60.70

Answer 2

P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

A = P(1 + r)n

Answer 3

do you know what to do?

Answer 4

umm I think I know what to do until i get n part. i get that 24 months is 2 years, but my answer doesnt seem to come up like the answer choices.

Answer 5

\[A = P(1 + r)^{n}\]

Answer 6

sorry forgot to add that

Answer 7

Monthly = P (1 + r/12)12 = (monthly compounding)

Answer 8

so P(1+r/12)^24

Answer 9

ok, let me plug that in. thanks again for helping me. i have been stuck on all of these questions for 2 days, and i decided that i needed some crazy help.

Answer 10

lol ya rates can be a pain

Answer 11

so what was the answer?