A computer with software costs $2,987, and Docie Johnson has agreed to pay 19% per year finance charge on the cash price. If she contracts to pay the loan in 18 months, how much will she pay each month?

2,987 * 0.19 * 1.5 = 851.30

851.3 + 2,987 = 3838.3

3838.3 / 18 = ?

$213.24

To find out how much Docie Johnson will pay each month, we need to calculate the total amount she will need to repay, including the finance charge.

First, let's calculate the finance charge. The finance charge is given as 19% per year. We can divide this by 12 to find the monthly finance charge rate:

Finance charge rate = 19% / 12 = 0.19 / 12 = 0.0158 (approximately)

Next, calculate the finance charge for the 18-month loan period:

Finance charge = Computer cost * Finance charge rate * Loan duration
= $2,987 * 0.0158 * 18
= $842.95

Now, we can find the total amount Docie will need to repay:

Total amount = Computer cost + Finance charge
= $2,987 + $842.95
= $3,829.95

Finally, we can calculate the monthly payment:

Monthly payment = Total amount / Loan duration
= $3,829.95 / 18
≈ $212.77

Therefore, Docie Johnson will need to pay approximately $212.77 each month for the 18-month loan agreement.