Pam purchased a new laptop, which was advertised for $750. She bought it on the installment plan by paying $50 at the time of purchase and agreeing to pay the balance plus 18% simple interest on balance in 24 monthly payments

a. how much is the finance charge
b. how much will each payment be
c. how much is the monthly payment

Question

Pam purchased a new laptop, which was advertised for $750. She bought it on the installment plan by paying $50 at the time of purchase and agreeing to pay the balance plus 18% simple interest on balance in 24 monthly payments

a. how much is the finance charge
b. how much will each payment be
c. how much is the monthly payment

mertsj · Answer

Calculate the interest on a principal amount of $700 for 2 years at 18% using:
Interest = principal x rate x time