Shelby purchased ski equipment for $827 using a six-month deferred payment plan. The interest rate after the introductory period is 13.87%. A down payment of $190 is required as well as a minimum monthly payment of $85. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?
A. $682.47
B. $172.47
C. $597.47
D. $186.47

Question

Shelby purchased ski equipment for $827 using a six-month deferred payment plan. The interest rate after the introductory period is 13.87%. A down payment of $190 is required as well as a minimum monthly payment of $85. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?
A.  $682.47
B. $172.47
C. $597.47
D. $186.47

anonymous · Answer

im trying to figure it out... what math class are you in?

anonymous · Answer

Advanced Algebra with Financial Applications

anonymous · Answer

hm... never heard of that class... well ill try my best

anonymous · Answer

I having a complete brain fart! Cant remember how to work this problem ;(

e.mccormick · Answer

You can use an equation or you can find each month as you go.

anonymous · Answer

im sorry i cant solve this... im afraid if i try any harder ill fry my brain lol... anyways ill try to get some people to help out...

e.mccormick · Answer

It says the interest is after the intro, so actually, no need to worry about the interest.

e.mccormick · Answer

Just find out the total for the min payment and down, then subtract that from the purchase price.

e.mccormick · Answer

Or min payments plural, because they are over the entire into.

anonymous · Answer

@e.mccormick need me to ask other people to help or you got this?

e.mccormick · Answer

I'm fine with it.  Just waiting on brittanyleann11 at this point.

anonymous · Answer

ok... well good luck @brittanyleann11

anonymous · Answer

I really have no idea how to do that . but ill try and figure it out

e.mccormick · Answer

Well, how many months does it say there are?

anonymous · Answer

It says six months, and then seven months.

e.mccormick · Answer

"a six-month deferred payment plan"  So the plan is 6 months

"What is the balance at the beginning of the seventh month" Well, the 7th month is AFTER that plan.

So the important one is the 6 months of the plan.  The 7th is just going to be what is left over after the 6.

If you make a payment each month for 6 months, how would you find the total of those payments?

anonymous · Answer

I dont know is there a equation you can give me then i will be able to solve it