Question

Sarah purchased a swing set for $1,450 using a six-month deferred payment plan. The interest rate after the introductory period is 19.99%. No down payment is required, but there is a minimum monthly payment of $20. 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

go to openstudy.com/groups/math

Answer 2

1595.87 I believe. what I did was I multiplied the 20, by 6 for the 6 months of the minimum payment, and that came to 120 then you subtract that by the total (1,450) and that comes to you owing 1330 then you multiply that by .1999 because of the interest rate of the 7th month and that comes to 265.867 and add that onto 1330.... and round it up.