Question

PLEASE HELP ASAP
Will medal for correct answer!

Eustis purchased a living room set for $2,784 using a 12-month deferred payment plan. The interest rate after the introductory period is 24.90%. A down payment of $225 is required as well as a minimum monthly payment of $107. What is the balance after the introductory period if only the minimum payment is made until then?

A. $1,990.18

B. $2,053.07

C. $3,167.18

D. $3,274.18

Answer 1

a

Answer 2

how do you know?

Answer 3

?

Answer 4

@VeritasVosLiberabit

Answer 5

b

Answer 6

elaborate please

Answer 7

got to love the people @ikatouni @jackieflawless who post answers with no work behind it

Answer 8

right?

Answer 9

@VeritasVosLiberabit

Answer 10

@gdog361 trying to find out how to calculate deferment. Still looking. I was able to use a calculator and see that @ikatouni is right

Answer 11

Let me try to find the formula

Answer 12

With every formula I keep getting 745
\[P=\frac{ r(PV) }{ 1-(1+r)^{-n} }\]

Answer 13

The interested accrued during deferment should be $778 which is added to the starting balance $2784

Answer 14

then multiply 107*12+225 = 1509 and subtract this value from to obtain the balance after the introductory period $2053

Answer 15

There is a step missing with the accrued value but hopefully this will be somewhat helpful. I willkeep looking and let you know if I find how the computer calculates $778 as the accrued interest

Answer 16

\[P=\frac{ .249(2784) }{ 1-(1+.249)^{-12} }\]=745
2784+745=3529
107*12+225=1509

3529-1509=$2020

Answer 17

r is rate, PV is stating value, n is the number of periods

Answer 18

i figured it out and @jackieflawless was right, its A, they only want the balance after the introductory period

Answer 19

its B

Answer 20

i put a and got credit