Zelma purchased an entertainment center for $4,174 using a 12-month deferred payment plan with an interest rate of 25.35%. She did not make any payments during the deferment period. What will the total cost of the entertainment center be if she must pay it off within five years after the deferment period?

$7,610.40

$4,174.00

$5,364.13

$9,513.00

Question

Zelma purchased an entertainment center for $4,174 using a 12-month deferred payment plan with an interest rate of 25.35%. She did not make any payments during the deferment period. What will the total cost of the entertainment center be if she must pay it off within five years after the deferment period?

 $7,610.40

 $4,174.00

 $5,364.13

 $9,513.00

dumbcow · Answer

get the new balance after 12 months of accruing interest

then use financial calculator or formula to get monthly payment

total = 60*monthly payment

anonymous · Answer

I got 5,364.13

dumbcow · Answer

i get 9,513  .... what did you get for monthly payment? did you use the formula?

dumbcow · Answer

sorry im slow...yes 5364.13 is the new balance after the deferred period

anonymous · Answer

It was wrong :(