Question

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?

Answer 1

I think first one would need to figure out the percent and the whole which would be 25.99% and the whole of $1,250. you would multiply tem together. I think I am figuring out this wrong. But I tried to help you.

Answer 2

Not enough information. What is the interest rate during the introductory period and how shall it be applied? Deferred Payment Plans can accrue interest or not accrue interest in an introductory period. We need a better definition