Julia purchased a new sofa for $1300 and made a 15% down payment and financed the rest over 12 months. The store charged 11% interest on the amount financed.
Find the down payment $
Find the amount financed: $
Find the interest paid: $
Find the monthly payment $
Down payment: 0.15 * 1300 = d
Amount financed: 1300 - d = c
Interest paid: 0.11 * c = b
Monthly payment: b/12
To find the down payment, we need to calculate 15% of the total cost of the sofa.
Down payment = 15% of $1300
= 0.15 * $1300
= $195
Therefore, the down payment is $195.
To find the amount financed, we need to subtract the down payment from the total cost of the sofa.
Amount financed = Total cost of the sofa - Down payment
= $1300 - $195
= $1105
Therefore, the amount financed is $1105.
To find the interest paid, we need to calculate 11% of the amount financed.
Interest paid = 11% of $1105
= 0.11 * $1105
= $121.55
Therefore, the interest paid is $121.55.
To find the monthly payment, we need to divide the amount financed plus the interest paid by the number of months (12).
Monthly payment = (Amount financed + Interest paid) / Number of months
= ($1105 + $121.55) / 12
= $1226.55 / 12
= $102.21 (rounded to the nearest cent)
Therefore, the monthly payment is approximately $102.21.