Explain how to solve please
She purchased a jet ski for $1,674 using a 12-month deferment plan. The interest rate is 23.37%. A down payment of $375 is required as well as a minimum monthly payment of $53. What is the balance at the beginning of the 13th month if only the minimum payment is made during the introductory period?

$1,001.30

$1,098.96

$1,584.30

$1,637.30

Question

Explain how to solve please
She purchased a jet ski for $1,674 using a 12-month deferment plan. The interest rate is 23.37%. A down payment of $375 is required as well as a minimum monthly payment of $53. What is the balance at the beginning of the 13th month if only the minimum payment is made during the introductory period?

 $1,001.30

 $1,098.96

 $1,584.30

 $1,637.30

strawberry17 · Answer

I am solving it and not getting any one of these..

strawberry17 · Answer

I'm guessing it could be the second or third one but not sure..

anonymous · Answer

it's the second one :P

strawberry17 · Answer

how do you know?

anonymous · Answer

because ima smart person :D

strawberry17 · Answer

are you for sure?? I really want to get this one right..

strawberry17 · Answer

are u there?

anonymous · Answer

oh sorry yeah i'm sure :)

strawberry17 · Answer

Do you know how to solve it, possibly?

anonymous · Answer

not really

strawberry17 · Answer

@jperez570 can u help?

strawberry17 · Answer

are u there?

anonymous · Answer

As soon as i'm done with this AP homework I will

strawberry17 · Answer

k

tkhunny · Answer

Charging 0.2337% monthly and paying $53, I get $928.55
Charging annual interest on the remaining balance after 1 year, I get $817.94
Double counting interest in a way that amounts to Loan Sharking, I get $1,311.19

Having said that last one, I sincerely hope it's not the last two.

You'll have to describe EXACTLY what happens to interest during the deferral period.

strawberry17 · Answer

Well, since she did not pay off the whole balance during the deferment period, she would have to pay interest on the principal balance. So I did:
$1674 • .02337 = 391.21
1674 + 391.21 = 2065.21
2065.21 - (53 • 12) = 1429.21
So, I got 1,429.21 and that is closest to the third one, if I even solved it right..

strawberry17 · Answer

So do u think its the second one?

tkhunny · Answer

If you take out the down payment, you are even closer to something.

strawberry17 · Answer

okay, thanks! It looks like it is the second one :)

tkhunny · Answer

Make sure you show the full solution when it is revealed.

strawberry17 · Answer

1429.21 - 375 = $1054.21    >>>>   close to $1,098.96

strawberry17 · Answer

Unfortunately, it was the third answer.

tkhunny · Answer

I'd love to see it motivated.

strawberry17 · Answer

It did not show how to solve for the right answer.