algebra

Susannah purchased ski equipment for $978 using a six-month deferred payment plan. The interest rate after the introductory period is 21.45%. A down payment of $150 is required as well as a minimum monthly payment of $75. What is the balance at the beginning of the seventh month if only the minimum payment is made during the introductory period?

A.$470.87

B.$920.87

C.$845.87

D.$487.69

My answer is $487.69

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  3. 👁 969
  1. balance financed = 978-150 = 828
    monthly rate = .2145/12 = .017875

    balance at end of 6 month if no payment had been made
    = 828(1.017875)^6
    = 920.87

    amount of the 6 payments at that time
    = 75( 1.017875^6 - 1)/.017875
    = 470.60

    balance owing at that time = 920.87 - 470.60 = 450.27

    None of the answers match my solution.
    Answers B and C aren't even logical.
    How did you get 487.69 ?

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