Elbert purchased a living room set for $5,021 using a 12-month deferred payment plan. The interest rate after the introductory period is 15.60%. A down payment of $375 is required as well as a minimum monthly payment of $122. What is the balance after the introductory period if only the minimum payment is made until then?

Question

anonymous · Answer

Can someone help me please........

anonymous · Answer

do you have a formula for this? how long is the "introductory period"?

anonymous · Answer

$375+12\times 122=1839$ so if the introductory period (i.e. no interest has been applied) is 12 months, the total remaining is $5021-1839$

anonymous · Answer

its  introductory period is 15.60%.

anonymous · Answer

is that what you mean sorry

anonymous · Answer

well the choices i have to pick from are $4,023.78

$3,960.91

$5,302.91

$5,424.91

anonymous · Answer

i don't know how to do this other than step by step

anonymous · Answer

is ok dont worry about=D your awsome for trying to help either way

anonymous · Answer

if you make the down payment, you have 4646 remaining
total after one month will be $4646(1+\frac{.156}{12})=4706.40$ then you pay 122 have a balance of $4706.40-122=4584.40$