Question

Jean purchased a $995 stereo system on the installment plan. She paid 20% down. The finance charge on the remainder was 19.4%. She was given 18 months to pay off the balance. What was her monthly payment?

Answer 1

Hey there, her monthly payment was- $51.32

Here is why;

P = 0.8 x 995 = $796.00

19.4% is 19.4%/12 = i = 1.61667% per month. The number of payments is
n = 18
A = P i /[1 - (1+i)^-n] FORMULA U NEED TO USE!

SO THE END RESULT IS >>>>A = 796*.0161667/[1 - 0.74929] = $51.32

HOPE I HELPED <3