Calculate the total deferred payment price.

Question

Karolyn takes out an installment loan to finance the purchase of a violin costing $14,750. Her loan requires a 10.625% down payment and equal monthly payments of $355 for 48 months. Calculate the total deferred payment price.

Answer 1

First find 10.625% of  $14,750

 

 

$14,750 x 10.625%=$1567.19

 

 

Multiply $355 x 48 = $17,040

 

 

Total deferred price = $1567.19 + $17,040 = $18,607.19