Asked by Steve
Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?
A $2,045.91
B $1,950.00
C $2,195.91
D $1,800.00
my answer is d because the interest hasn't started yet
A $2,045.91
B $1,950.00
C $2,195.91
D $1,800.00
my answer is d because the interest hasn't started yet
Answers
Answered by
Reiny
I agree,
but then pay this off as quickly as possible with such a high interest rate.
Notice the payment of $25 wouldn't even pay the interest.
(first months interest after introductory period
= 1800(.2399)(1/12) = $35.99
but then pay this off as quickly as possible with such a high interest rate.
Notice the payment of $25 wouldn't even pay the interest.
(first months interest after introductory period
= 1800(.2399)(1/12) = $35.99
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.