Question

help please?

Becky purchased a home entertainment center set for $2,254 using an 18-month deferred payment plan with an interest rate of 22.48%. She did not make any payments during the deferment period. What will Becky’s monthly payment be if she must pay off the dining room set within three years after the deferment period?

Answer 1

@surry99 could you help me with this one too? i want to make sure i'm doing them right.

Answer 2

Sure you get started and I will be right back...helping someone else at the moment

Answer 3

okay thank you

Answer 4

2,254(.2248)=506.70
2,254+506.70=2,760.70
2,760.70(.2248)=620;61
506.70+620.61+2,254=3,381.31 is my final answer i believe

Answer 5

not sure if i did that right or not

Answer 6

you have done the first two years you need to do the third year

Answer 7

so what i have so far is correct? what should i do now?

Answer 8

in order to get the third year

Answer 9

Just continue your calculations from 3381.31

Answer 10

should i multiply that from the interest? then add that to 3381.31 to get the final answer?

Answer 11

2,254(.2248)=506.70
2,254+506.70=2,760.70
2,760.70(.2248)=620;61
506.70+620.61+2,254=3,381.31
3,381.31(.2248)=760.12
3,381.31+760.12=4,141.43 as my final answer.

Answer 12

Looks good ...so she owes a total of 4141.43 and must pay that off in how many months?

Answer 13

oops hang on..

Answer 14

For first year 2254(.2248) = 506.70
so at the end of first year...2254 + 506.70 = 2760.70

Second year
2760.70(.2248) =620.61
end of second year 2760.70+ 620.67 = 3381.31

Third year
3381.31(.2248) = 760.12
End of third year = 3381.31+760.12 = 4141.43

ok, just writing it a little different.

Now how many months does she have to pay this total amount off...Read the question carefully

Answer 15

she has 3 years

Answer 16

or wait is it 18 months?

Answer 17

no she has eighteen months because she makes no payments during the deferment period

Answer 18

okay so how do i figure out her monthly payments for those 18 months?

Answer 19

Take the total she owes and divide by 18 months...make sense?

Answer 20

4141.43/18=230.08

Answer 21

looks good...the question is a bit ambiguous but we assumed the 3 years started from the moment she bought the entertainment center which is what happens in real life.

Answer 22

thanks so much! you're a great help.

Answer 23

np