Problema Solution
Sarah purchased a swing set for $1,450 using a six-month 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
the balance is $1595.867 at the beginning of the seventh month
The minimum payment for the first Six months is 20 X 6 = 120
1450 - 120 = 1330
1330 X(1+19.99%)=1595.867