Question

Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?(4 points) $1,950.00 $2,045.91 $1,800.00 $2,195.91

Answer 1

it is $2,045.91

Explanation:

Answer 2

$1800

Explanation:

If we pay $25 monthly, then at the beginning of the seventh month you should have paid:

$25*6 = $150

At the beginning of the seventh month we will have:

$1950 - $150 = $1800.

No interested is charged during the introductory period, so at the beginning of the seventh month the balance will be $1800.