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Question

if you buy a computer directly from the manufacturer for 2448 and agree to repay it in 36 equal installments 1.62% interest per month on the unpaid balance, how much are your monthly payments?

Answer 1

p = [r(c)] / [1 - (1 + r)^-n], where p = monthly, c = cost, r = rater per period, n = number of periods

 

p = [(0.0162)(2448)] / [1 - (1.0162)^-36]

p ≈ (39.6576) / [1 - 0.560723993]

p ≈ 39.6576 / 0.43927601

p ≈ 92.28

 

The monthly payment is approximately $92.28.