Question

CHECK MY WORK, please? :) 1) Susannah purchased a lawn mower for $1,250 using a six-month deferred payment plan. The interest rate after the introductory period is 25.99%. No down payment is required, but there is a minimum monthly payment of $30. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?

Answer 1

Payment made in the introductory (6 months) period = $30 x 6 = $180
Balance at the beginning of the seventh month is $1,250 - $180 = $1,070