Problema Solution
Sarah purchased a swing set for $1,450 using a six-mon the deferred payment plan. The interest rate after the introductory period is 19.99%. No down payment is required, but there is a minimum monthly payment of $20. 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 provided by our tutors
Total payments during 6 month introductory period = 20 * 6 = $120
Balance at beginning of 7th month = $1,450 - $120 = $1,330