Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 16% (add-on rate). If the refrigerator at Sears costs $1,598 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment?

I got $53.14 but it was wrong

2 answers

1598 * 1.05 = 1,677.90 total price

I = 1677.9 * 0.16 * 3

I = 805.39

(1,677.9 + 805.39) / 36 = 68.98 monthly payment
$1598 *5% =$79.90
$1598 + $79.90 = $1677.90
$1677.90 * 15% = $251.69
$1929.59 / 36 = $53.60