Question

Use the equation below and choose the correct answers for c, the total of the payments, and the monthly payment.



Carl Carpenter buys a drill press. The price, including tax, is $675.00. He finances the drill press over 24 months after making a $50 down payment. The true annual interest rate is 14%. What are Carl's monthly payments (principal plus interest)?

amount of intrest to the nearest penny c= $
total of payments = amount financed + c=$
total of payments / number of payments = monthly payment= $

Answer 1

We are given with"
First cost = $675.00
Downpayment = $50
Payment time length = 24 months
Annual interest rate = 14%

We solve this using:
A = (675 - 50) (0.14/12 (1 + 0.14/12)^24) / ( (1 + 0.14/12)^24 - 1)
A = $30