Question

Martin buys a jet ski from a store offering 0% interest for 24 months. Calculate the average minimum monthly payment he should make to avoid paying deferred interest charges for the $6,500 watercraft.

(1 point)
Responses

$270.83

$270.83

$361.11

$361.11

$541.67

$541.67

$1,083.33

Answer 1

To calculate the average minimum monthly payment Martin should make to avoid paying deferred interest charges on the $6,500 watercraft with 0% interest for 24 months, you can use the following formula:

\[
\text{Average Monthly Payment} = \frac{\text{Total Amount}}{\text{Number of Months}}
\]

In this case:

- Total Amount = $6,500
- Number of Months = 24

Now, plug in the values:

\[
\text{Average Monthly Payment} = \frac{6,500}{24} \approx 270.83
\]

Therefore, the average minimum monthly payment Martin should make is **$270.83**.