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Vic bought a new plasma TV for $2400. He made a down payment of $200 and then financed the balance through the store. Unfortunately, he w
Question
Vic bought a new plasma TV for $2400. He made a down payment of $200 and then financed the balance through the store. Unfortunately, he was unable to make the first monthly payment and now pays 6% interest per month on the balance (while he watches his TV).
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Mathematics
4 years
2021-08-09T19:44:31+00:00
2021-08-09T19:44:31+00:00 1 Answers
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This question is incomplete, the complete question is;
Vic bought a new plasma TV for $2400. He made a down payment of $200 and then financed the balance through the store. Unfortunately, he was unable to make the first monthly payment and now pays 6% interest per month on the balance (while he watches his TV).
What is Vic’s Monthly interest payment ( Assume interest rates are 1/12 of annual interest rates)
Answer: Vic’s Monthly interest payment is $132
Step-by-step explanation:
Given that;
Purchase cost of plasma Tv = $2400
down payment made = $200
so,
Balance financing from store = $2400 – $200 = $2,200
also given that Interest rate is 6% per month6
Now Monthly interest payment will be;
⇒ financing amount × interest rate
⇒ 2200 × (6/100) = 132
Therefore, Vic’s Monthly interest payment is $132