Question

Anthony purchased a $227 stereo system at Wrigley's Department Store. He paid $47 down and agreed to pay the balance in 12 equal monthly payments. The finance charge was 9.6% simple interest. What was the amount of each payment

Answer 1

Calculation:

Total Amount: $227

Down Payment: $47

Interest Rate: 9.6% (0.096)

Number of Payments: 12

Remaining Balance: $227 - $47 = $180

Remaining Balance with Interest: $180 + (9.6/100 * $180) = $197.68

Amount of Payment: $197.68 / 12 = $16.47

Answer: The amount of each payment is $16.47.