Question

Charlotte purchased a pool for $7,680 using a six-month deferred payment plan with an interest rate of 20.45%. She did not make any payments during the deferment period. What will Charlotte’s monthly payment be if she must pay off the pool within three years after the deferment period?

$213.33

$236.10

$317.82

$371.83

Answer 1

take the initial balance and compound it monthly for 6 months

Answer 2

then we can use that balance to determine the Payment for a 3 year payoff

Answer 3

7680(1+0.2045/6)^3 ?

Answer 4

/12

Answer 5

and ^6

Answer 6

With that I got 8499.51

Answer 7

7680(1+0.2045/12)^6 = balance to pay off

Answer 8

now we take that balance and our 1+r/12 and run it for 3*12 periods of payments

Answer 9

\[8500~k^{36}(\frac{1-k}{1-k^{36}})~;~k=1+\frac{.2045}{12}\]

Answer 10

$236.10
?

Answer 11

i get more like 317.83

Answer 12

Hm, maybe I left something out

Answer 13

http://www.wolframalpha.com/input/?i=8500*k%5E%2836%29%281-k%29%2F%281-k%5E%2836%29%29%2C+k%3D1%2B0.2045%2F12