Sheds R Us sells $600 sheds on a monthly payment plan over 2 years.

Question

a) If the interest rate is 1.5% per month, find the monthly payment.
Answer = $
b) If instead the interest rate is 1.75% per month, find the monthly payment
Answer = $
can anyone help me with which format i should use .. have tried several, none of which seem to be correct.

Answer 1

a. P = Po(1+r)^n

Po = $600

r = 1.5%/100 = 0.015 = Monthly % rate
expressed as a decimal.

n = 12comp./yr. * 2yrs. = 24 Compounding
periods.

Solve for P.

Monthly Payment = P/24

a. Simple Interest:
P = Po + Po*r*t = 600 + 600*0.015*24

Solve for P.

Monthly payment = P/24

b. Same procedure as "a".