Question

Tom Slick buys a set of tires for his car. The price, including tax, is $950.00. Tom finances the tires over 12 months after making a $50 down payment. The true annual interest rate is 18%. What are his monthly payments (principal plus interest)?

Answer 1

First=87.75

Second=987.75

Third=82.31

Explanation:

Odyssey Ware

Answer 2

(0.18×900×13)÷(2×12)
=87.75
Total payments
87.75+900
=987.75
Monthly payment
987.75÷12
=82.31