Help?

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

Help?

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

agent0smith · Answer

Not 100% sure on this... but i can estimate i think.

find the interest that'd accumulate over 6 months, using the compound interest formula from earlier:

A= 3412(1+0.2953/12)^(12*0.5) the 0.5 is cos 6 months is only half a year

agent0smith · Answer

Then from that number, subtract the 6 payments of $147 that he'd make over the 6 months...

anonymous · Answer

thats not right then :o

tkhunny · Answer

I wonder why these problems just never have enough in formation.  There are terms in deferred payment plans.  Sometimes, one pays interest.  Sometimes, one doesn't.  What are the terms of the plan?

anonymous · Answer

this is all the question asks..

agent0smith · Answer

From the calculation above: 3947.8
minus 6*147  

=$3065.81

anonymous · Answer

Ahhhhh :)