*Advance Algebra With Financial Applications*
[WORK IS SHOWN]
Carter made payments of $147 each month toward a bedroom set that he purchased for $3,412 using a six-month deferred payment plan. If the interest rate on the plan is 29.53%, what is the balance after the deferment period?

$2,530.00

$3,065.81

$3,412.00

$3,947.81

Question

*Advance Algebra With Financial Applications*
[WORK IS SHOWN]
Carter made payments of $147 each month toward a bedroom set that he purchased for $3,412 using a six-month deferred payment plan. If the interest rate on the plan is 29.53%, what is the balance after the deferment period?

 $2,530.00

 $3,065.81

 $3,412.00

 $3,947.81

anonymous · Answer

* MY WORK * http://www.wolframalpha.com/input/?i=B%3D3265(1%2B(0.0246083333)%2F(12))%5E(12*1.5)&t=crmtb01

tkhunny · Answer

0.2953/12 = 0.02460833

Why are you dividing by 12 again?

anonymous · Answer

I dont really know ?

tkhunny · Answer

There you have it.  Don't do that.  Use the division by 12 only for the original ANNUAL interest rate.  Once you make it monthly, don't divide by 12 a second time.

Give it another go.

anonymous · Answer

ok so don't divide the interest rate ?