posted by sarah on .
Your service contract for washer repair maintenance is offered at $48 per year. If a customer wants to pay it off in equal monthly installments for one year and if the true annual interest charge is 18%, what should his monthly payment be?
(48 * 1.18) / 12 = ?
I got 4.72& the computer says the answer was wrong.
I got $4.72 also.
Weird lol Well this is the formula I= 2yc/m(n+1)
y = payments per year; c = total interest paid; m = amount financed; n = total number of payments.
I do not know how to plug the numbers in right with this equation.