HELP WITH DEFERRED PAYMENT PLAN? please

Sheila purchased ski equipment for $513 using a six-month deferred payment plan. The interest rate after the introductory period is 18.39%. A down payment of $125 is required as well as a minimum monthly payment of $65. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?

Question

HELP WITH DEFERRED PAYMENT PLAN? please

Sheila purchased ski equipment for $513 using a six-month deferred payment plan. The interest rate after the introductory period is 18.39%. A down payment of $125 is required as well as a minimum monthly payment of $65. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?

amistre64 · Answer

do we assume the interest accrues for 6 mnths?

amistre64 · Answer

Month 1 = (513 - 125) *  (1+.1839/12)
Month 2 = Month 1 * (1+.1839/12)
Month 3 = Month 2 * (1+.1839/12)
Month 4 = Month 3 * (1+.1839/12)

etc ...

anonymous · Answer

im lost