Question

Evelyn purchased a dining room set with a 12-month deferred payment plan. The interest rate on the plan was 25.57%. The dining room set must be paid off within two years after the deferment period. What is Evelyn’s monthly payment after the deferment period if the price of the dining room set was $2,875 and she made no payments during the deferment period?

$119.79

$154.28

$170.60

$198.68

Answer 1

The interest rate on the plan was 25.57%
so she must pay back 125.57%

of the original price - $2,875

Answer 2

total payments necessary are:
$2,875 * 1.2557 , the small number is the %/100

Answer 3

whats the formula? or is that it?

Answer 4

the formula for principal+interest is:

return = (1 + i )*principal , i is the interest rate hundredths

Answer 5

can you help me figure out the answer please

Answer 6

we
1) find the total repayment debt
2) find monthly payment

Answer 7

for the formula they have interest rate in "hundredths"

10% corresponds to 10/100 i=0.1
25% corresponds to 25/100 i=0.25
100% corresponds to 100/100 i=1

we need this interest for 25.57%

Answer 8

so .25?

Answer 9

yes :)

Answer 10

ok now what

Answer 11

now formula was
\[return = (1+i) \times principal\]

the "principal" in this case is the cost of the set. The store invests it into Evelyn's household, so other direction - mechanism is the same.

Answer 12

r=(1+.25) x 2875 ?

Answer 13

YES

Answer 14

3593.75

Answer 15

that's the total money Evelyn must return to the store/credit institution

Answer 16

"The dining room set must be paid off within two years"

that's how many months with payments?

Answer 17

24 months

Answer 18

@mathessentials

Answer 19

correct, so she got 24 months to repay the $3593.75

Answer 20

than what

Answer 21

they will set the minimum so every 24 months pay the same

Answer 22

monthly payment = debt / months

monthly payment = $3593.75 / 24

Answer 23

149.74

Answer 24

it's $150 when you take the precise 25.57%
instead of just ~%25

Answer 25

than what? or is that it?

Answer 26

I'm not sure why our result is off by ~$4.5

Answer 27

idk :( but is the answer 154.28

Answer 28

I believe so, it's the closest one

Answer 29

thank you!
do you think you could try and help with more

Answer 30

time for one more

Answer 31

Zoey opened a savings account four years ago with a deposit of $935.15. The interest on the account compounds monthly. If Zoey’s current account balance is $1,128.16, what is the interest rate on the account?

0.4%

4.7%

14.2%

18.9%

Answer 32

there's a formula for compounding:
\[A=P(1+\frac{ i }{ n })^{ny}\]
A: Account balance P: Principal
i: interest y: number of years
n: times it is compounded p.a.

Answer 33

basically we just insert everything where it goes.

data given was:
A: $1,128 P: $935
y: 4 years
n: 12 times p.a. (monthly)

Answer 34

if it is compounded monthly, how often is it compounded in a year?

Answer 35

12

Answer 36

yep, so n=12

Answer 37

\[$1128=$935(1+\frac{ i }{ 12 })^{12 \times 4}\]

Answer 38

4.7%

Answer 39

Wyatt purchased a living room set for $4,109 with an 18-month deferred payment plan. The interest rate on the plan was 27.41%. The living room set must be paid off within three years after the deferment period. What is the total cost of the living room set if she made no payments during the deferment period and made only minimum payments after the deferment period?

$4,109.00

$6,170.03

$9,117.00

$13,675.50

Answer 40

you are right, the equation works for 4,7%

Answer 41

I believe we're supposed to use the same complicated formula
for these problems......

Answer 42

the one we used for the Evelyn one?

Answer 43

the one from the 2nd problem. maybe that's why Evelyn result was off

Answer 44

try to open a new question , maybe someone else is more familiar with deferment payments

Answer 45

ill see! but thank you so much for your help!

Answer 46

Eli made a down payment of $1,750 on a jet ski with a purchase price of $9,925. The balance was paid for using a five-year installment loan. If the interest rate on the loan is 11.4%, what is the total cost of the jet ski?

$9,106.95

$10,762.80

$12,512.80

$13,066.80
how bout this?