Question

Justine purchased computer software for $5,200. With a down payment of $1,000, she wa
finance the balance at 12% for 6 years. Find the semiannual payments. Use the table on
$964.36
$620.26
$500.98
$3,699.02

Answer 1

Answer:

The semi annual payment is $4144.95

Step-by-step explanation:

Given as :

The price of computer software = $5,200

The down payment amount = $1000

So, The rest amount after down payment = $5,200 - $1,000 = $4,200

Now, The principal amount of finance = p = $4,200

The rate of interest = r = 12%

The time period of loan = t = 6 years

Let The Amount after 6 years = $A

Now, From compounded method

Amount = Principal × $(1+\dfrac{\textrm rate}{ 100})^{ \textrm time }$

Or, A = p  × $(1+\dfrac{\textrm r}{ 100})^{ \textrm t }$

Or, A = $4,200 × $(1+\dfrac{\textrm 12}{100})^{ \textrm 6 }$

Or, A = $4,200 × $(1.12)^{6}$

Or, A = $4,200 × 1.9738

∴  A = $8289.9

So, The semi annual payment = $\dfrac{\textrm Amount}{2}$

Or, The semi annual payment = $\dfrac{\textrm 8289.9}{2}$

∴ The semi annual payment = $4144.95

Hence, The semi annual payment is $4144.95 Answer