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5 October, 22:43

Fiona installed a new pool for $9940 using a 12 month deferred payment plan with an interest rate of 22.53%. What is the balance after the deferment period A payment of $397 are each month?

A. $7,761.84B. $9,940.00C. $5,176.00D. $12,425.84

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  1. 5 October, 23:25
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    A. $7,761.84

    Explanation:

    Balance after deferment period before any payment made.

    A = P (1 + r) ^t

    A = $9940 * (1 + 0.2253) ^ (12/12)

    A = $12179.5

    Final balance after monthly payment.

    A_f = $12179.5 - (12*397)

    A_f = $7415.5

    Therefore, The balance after the deferment period A payment of $397 are each month is $7,761.84.
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