You bought a laptop computer for $525 on the "12 months is the same as cash" plan. The terms of the plan on the contract stated that if not paid within 12 months, you would be assessed 15.5 percent APR for the amount on the first day of the plan. If you pay the laptop in 11 months, If you want to pay off the $525 laptop within 12 months, how much should you budget per month for payment?

Question

You bought a laptop computer for $525 on the "12 months is the same as cash" plan. The terms of the plan on the contract stated that if not paid within 12 months, you would be assessed 15.5 percent APR for the amount on the first day of the plan. If you pay the laptop in 11 months,  If you want to pay off the $525 laptop within 12 months, how much should you budget per month for payment?

jim_thompson5910 · Answer

If you want to pay off the $525 in 12 months, then you should set aside 525/12 = 43.75 dollars per month