Question

* Financial Algebra * [Work Is Shown]

Zoe purchased an entertainment center for $3,257 using a 12-month deferred payment plan with an interest rate of 28.05%. 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 four years after the deferment period?

$3,257.00

$4,297.69

$7,195.68

$8,994.60

Answer 1

I plug this in B=3257(1+(0.023375))^(12*1.5)

Answer 2

I got 4936.79

Answer 3

12 months defered is not 1.5 years

Answer 4

i can use my formula, adjusting for the defered period as:\[B_n=B_ok^{d+n}-P\frac{1-k^n}{1-k}\]
d = 12, n = 4 years of 12 months each = 48

solving for P*48 tells how much was paid in total

Answer 5

P = 3257k^(12+48)(1-k)/(1-k^48)

48 P = 48*3257k^(12+48)(1-k)/(1-k^48), k=1+.2802/12

http://www.wolframalpha.com/input/?i=48*3257k%5E%2812%2B48%29%281-k%29%2F%281-k%5E48%29%2C+k%3D1%2B.2802%2F12

Answer 6

well, .2805 but thats in the ball park nonetheless

Answer 7

so the answer is 7,195.68

Answer 8

you 12/4=48 ?

Answer 9

wait that was a stupid queation

Answer 10

12 months of (d)eferred

4 years of 12 payments a year is 48 payments total

Answer 11

oh you multiplied . Do I add it in my formula ?

Answer 12

the formula you presented just gives you a defered balance after a year and a half, ... its rather incomplete as far as a solution goes

Answer 13

the key is to determine the payment amount: 149.91

then multiply it by 48 payments to see how much you piad ....

Answer 14

would 7,195.68 be my answer .

Answer 15

of course

Answer 16

ok , Thank you alot again lol

Answer 17

yw