Question

Use the formula to solve for c. Choose the right answer.

Amount Financed (m) = $600
Number of Payments per year (y) = 12
Number of Payments (n) = 24
APR (I) = 18%


A)112.33
B)112.12
C)112.50

Answer 1

(0.18×600×25)÷(2×12)
=112.5

Answer 2

Answer:

The correct option is C). $112.50

Step-by-step explanation:

Amount Financed (m) = $600

Number of Payments per year (y) = 12

Number of Payments (n) = 24

APR (I) = 18%  

$\text{Time = }\frac{\text{Number of payments}}{\text{Number of payments per year}}\\\\\implies\text{Time = }\frac{24}{12}=2\text{ years}$

Now, c can be calculated by using the formula :

$c=\frac{\text{Amount financed}\times Rate\times (n+1)}{Time\times \text{Number of payments per year}\times 100}\\\\\implies c = \frac{600\times 18\times (24+1)}{2\times 12\times 100}\\\\\implies c=\frac{600\times 18\times 25}{2\times 12\times 100}\\\\\implies c = 112.5$

Hence, The required value of c = $112.50

Therefore, The correct option is C). $112.50