A 50" TV costs SEK 5495 in cash.

Question

A 50" TV costs SEK 5495 in cash. The repayment is 151 SEK per month + 28% annual interest on the debt. The Eriksson family pays 1000 SEK in cash and the rest on instalment.

How much should be paid on the first instalment?

Answer 1

The repayment = 151 + debt x the interest rate of the period (monthly).

The debt = cost - the cash paid down = 5495 - 1000 = 4495

The interest rate of the period ( 12 months a year) = 0.28 divided by 12 = 0.28 / 12

The first repayment = 151 + debt x the interest rate of the period.

= 151 + 4495 x 0.28 / 12

= 151 + 104.86

= 255.88