Answer:
P = $ 144.99
Step-by-step explanation:
Given data:
cost of home entertainment center is $2665
duration of deferred payment plan is 18 month
interest rate is 24.36%
Total amount to be paid is [tex]= P(1+ \frac{R}{100})^t[/tex]
[tex]= 2665 (1+ \frac{24.36}{100})^1.5[/tex]
A = 3695.88
From the information in the questioon this amount is to be paid in 3 year . Thus we have
Monthly payment is =
[tex]P = \frac{r(Pv)}{1 - (1+ r)^{-n}}[/tex]
p = monthly payment
Pv = present value = 3695.88
r =rate per period [tex]= \frac{24.36}{12} = 0.020[/tex]
n = number of period [tex]= 12\times 3 = 36[/tex]
plugging all value in the above formula
[tex]P = \frac{0.020\times 3695.88}{1 - (1+0.020)^{-36}}[/tex]
P = $ 144.99
