Friday

March 27, 2015

March 27, 2015

Posted by **sabina** on Monday, January 11, 2010 at 11:00am.

20% down. The finance charge on the remainder was 19.4%. She was

given 18 months to pay off the balance. What was her monthly payment?

- math -
**drwls**, Monday, January 11, 2010 at 11:54amThe original unpaid balance was

P = 0.8 x 995 = $796.00

A finance charge of 19.4% is 19.4%/12 = i = 1.61667% per month. The number of payments is n = 18

The formula you need to use can be found at

http://en.wikipedia.org/wiki/Amortization_calculator

It is

A = P i /[1 - (1+i)^-n]

In your case,

A = 796*.0161667/[1 - 0.74929] = $51.32

**Answer this Question**

**Related Questions**

math - A flower shop owner wants to pay off the loan on a used delivery van that...

Business Math - Can someone please check over my answers? I'm not sure about ...

math - Sam received a $290 discount loan to purchase a stereo. The loan was ...

Maths - In order to make some home improvements, a home owner spent $40,000. He ...

math - A sports car is on sale at the local dealership.The price discounted is $...

Math - The finance charge on a copier was $1,778. The loan for copier was to be ...

Math - The finance charge on a copier was $1,778. The loan for copier was to be ...

consumer math - Nikki borrowed $500 at 9% interest for 12 months under a ...

math - Elaine purchased a new copy machine and financed it for one year. The ...

Finance - A family purchased a new ski boat for $20,000. The loan agency ...