Answered

Join IDNLearn.com and become part of a knowledge-sharing community that thrives on curiosity. Ask anything and receive well-informed answers from our community of experienced professionals.

Jon and Erin are purchasing a new TV and stereo surround system for their living room. The cost of both items is $1675.00. They are purchasing them with an installment loan that has an APR of 12%. The store financing requires a 10% down payment, and 12 monthly payments. A. Find the amount of the down payment. B. How much will they finance? C. Write an equation for the monthly payment. Use the chart below.

Sagot :

Fichohidn

Answer:

$167.50

$1507.50

$134

Step-by-step explanation:

Given that:

Cost of sound system = 1675

APR, = 12%

Down payment = 10%

Number of monthly payments = 12

r = 0.12 / 12 = 0.01

Amount of down-payment :

10% * cost of sound system

0.1 * 1675 = $167.50

Amount to be financed :

$1675 - $167.50

= $1507.50

Monthly repayment :

Using the relation :

A / {[(1+r)^n]-1}/[r(1+r)^n]

1507.5 / (1+0.01)^12-1)/(0.01(1+0.01)^12)

1507.50 / 0.1268/(0.01 * 1.1268)

1507.50 ÷ (0.1268/0.01126)

1507.50 ÷ 11.25

= $134

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.