Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?

$1,950.00

$2,045.91

$1,800.00

$2,195.91

Question

Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?

 $1,950.00

 $2,045.91

 $1,800.00

 $2,195.91

anonymous · Answer

. 23.99% (= 2% per month). 2% of 1,950 = 39 month in interest. You're paying 25 / month. So, the monthly balance increases by 14. 7 months of increases of 14 = 98.
1950 + 98 = 2048
That's what I got, so. . .

anonymous · Answer

dang its not an option lol

anonymous · Answer

If I were you I'd try 'B' , unless you think there's a better option, sorry. D: