Question

** Advance Algebra With Financial App **
Does anyone know the formula to this problem ?

Bianca purchased a home entertainment center for $3,987 using an 18-month deferred payment plan with an interest rate of 28.12%. She did not make any payments during the deferment period. What will Bianca’s monthly payment be if she must pay off the home entertainment center within three years after the deferment period?

$110.75

$168.04

$250.62

$257.91

Answer 1

is it this A = P(1 + r)^t ?

Answer 2

Is this right ? A=3,987(1+0.2812)^(18)

Answer 3

compound interest

Answer 4

is my formula right ?

Answer 5

this looks like annuity to me

Answer 6

@ganeshie8 I found the right formula but I dont know what is n

A = P(1+r/n)^(n*t)

Answer 7

it wont work

Answer 8

lookup your notes for annuity formula

Answer 9

Is it this https://www.google.com/search?q=annuity+formula&rlz=1C1CHFX_enUS492US492&um=1&ie=UTF-8&hl=en&tbm=isch&source=og&sa=N&tab=wi&ei=SzzPUYa7FIzK9QTwpoHQDA&biw=1280&bih=666&sei=fjzPUa-JGoK88AS3-YDoBA#facrc=_&imgdii=_&imgrc=8lcHOxFdpVdAZM%3A%3BKTMaqsbQ4jkWcM%3Bhttp%253A%252F%252Fwww.financeformulas.net%252FFormula%252520Images%252FPV%252520of%252520Annuity%2525201.gif%3Bhttp%253A%252F%252Fwww.financeformulas.net%252FPresent_Value_of_Annuity.html%3B187%3B143

Answer 10

ive the formula, but im not getting answer thats in ur choices

Answer 11

defered adds to the balance exponent, something like

\[B_n=B_o(k)^{c+t}-P\frac{1-(k)^t}{1-k}\]

Answer 12

im trying to solve but im getting frustrated

Answer 13

http://www.wolframalpha.com/input/?i=3987%281%2B.2812%29%5E36+%3D+x%28%281-%281%2B.2812%29%5E36%29%2F%281-%281%2B.2812%29%29%29

Answer 14

i got 1121.29 somehow

Answer 15

@amistre64
B=?
K=?
C=?
N=?
T=?
etc..

Answer 16

\[B_n=B_o(k)^{c+t}-P\frac{1-(k)^t}{1-k}\]
\[0=B_o(k)^{c+3*12}-P\frac{1-(k)^{3*12}}{1-k}\]
\[0=B_o(k)^{1.5*12+3*12}-P\frac{1-(k)^{3*12}}{1-k}\]
\[0=B_o(k)^{12(4.5)}-P\frac{1-(k)^{36}}{1-k}\]
\[B_o(k)^{12(4.5)}=P\frac{1-(k)^{36}}{1-k}\]

Answer 17

B is balance, k is the compounding setup 1+r/c
t is generaly the years

Answer 18

Is there an easier formula please ?

Answer 19

maybe, but this is the one i developed from my own studies; the accounting course textbook liked to try to define a new formula for all sorts of situations, and i simply used the one

Answer 20

the k is a clean up variable to make it simpler to read thru

Answer 21

k = 1+.2812/12 = 1.0234
\[3987(k)^{54}=P\frac{1-(k)^{36}}{1-k}\]solve for P

Answer 22

the formula is just:

Remaining Balance = Balance Compounded - Annuity Payments

Answer 23

adjust the balance compounded by the derfered period

Answer 24

so k=1.0234

Answer 25

approximately yes

Answer 26

it appears that the answers want a more exacting form

Answer 27

off by a few cents is all

Answer 28

i just saw ganshes attempt, just forgot the compounding effect, .2812/12

Answer 29

yeah thanks for the catch amistre :)

http://www.wolframalpha.com/input/?i=3987%281%2B.2812%2F12%29%5E36+%3D+x%28%281-%281%2B.2812%2F12%29%5E36%29%2F%281-%281%2B.2812%2F12%29%29%29

still its off by few dollars :\

Answer 30

that 36 on the left side, needs to be adjust by 18 months is all, in that timeframe there was no payments being made

Answer 31

oh deferment period we cant ignore ?

Answer 32

the beginning balance at the start of the payments is 3987(k)^(18); not 3987

Answer 33

k^18 * k^36 = k^ 54

Answer 34

oh the interest accumulates during deferment period also is it

Answer 35

yep :) this aint rooms to go lol

Answer 36

wow ! i get it the exact answer now :) i feel accomplished !! thanks amistre

Answer 37

:) youre welcome

Answer 38

@amistre64 Thank you soo much !

Answer 39

youre welcome. i remember everyone in the class i took trying to remember all the different forumlas and such; i never worried about it :)

Answer 40

so the answer is 168.04

Answer 41

no, that is without the defered period; its more like 250

Answer 42

http://www.wolframalpha.com/input/?i=3987%281%2B.2812%2F12%29%5E%2854%29%281-%281%2B.2812%2F12%29%29%2F%281-%281%2B.2812%2F12%29%5E%2836%29%29