Question

Susan's old refrigerator will no longer maintain an even coolingtemperature. However, she is not able to afford a new fridge right now.She finds a store willing to sell her a $1,938 fridge on an installment planwith only 11% down. The payments for the fridge over a 4 year period willbe $43.99 per month. What will be the total cost of the fridge includingfinance charges? Round your answer to the nearest cent. Do not include adollar sign in your answer.

Answer 1

Answer:

$\text{ 2,324.70}$

Explanation:

Here, we want to get the total cost of the fridge

She is to pay 11% of the cost as down payment

We have that value as:

$\text{ 11\% of 1938 = }\frac{11}{100}\times1938\text{ = \ 213.18}$

After paying this, there is to be a payment of $43.99 per month for 4 years. There are 12 months in a year. The number of months in 4 years will be 4 * 12 = 48 months

That would be a total of:

$\text{ = 48 }\times\text{ \ 43.99 = \ 2,111.52}$

The total cost of the fridge would thus be:

$\text{ \ 213.18 + \ 2,111.52 = \ 2,324.70}$