Question

Martin dennis brought a wide screen television for $1720. He made a down payment of 15% and paid the balance over 18 months. The fiance charge was 4% of the amount financed. Find the down payment and the installment price of the televison and the monthly payment

Answer 1

Answer:

Down payment is $258

Installment price is $1766.22

monthly payment is $83.79

Step-by-step explanation:

Down payment is 15% of $1,720 which is $258  (15%*$1720)

Monthly payment can be computed using pmt formula in excel

=pmt(rate,nper,-pv,fv)

rate is the interest rate per month which 4%/12=0.33%

nper is the number of months of payments that is 18

pv is the finance amount which is the price minus down payment i.e $1462 *($1720-$258)

fv is the total finance amount plus interest which is unknown i.e 0

=pmt(0.33%,18,-1462,0)=$ 83.79  

installment price =down payment +total repayment

                             =$258+($83.79*18)=$1766.22