Find c, the total of the payments, and the monthly payment. Choose the correct answers. Sue Stitch buys a sewing machine. The price, including tax, is $575.00. She finances the sewing machine over 24 months after making a $25 down payment. The true annual interest rate is 15%. What are Sue's monthly payments (principal plus interest) ? To the nearest penny, c = $. Total of payments = amount financed + c = $. Total of payments : number of payments = monthly payment = $.

Question

Mathematics

Adelyn Waller

21 August, 18:37

Find c, the total of the payments, and the monthly payment. Choose the correct answers. Sue Stitch buys a sewing machine. The price, including tax, is $575.00. She finances the sewing machine over 24 months after making a $25 down payment. The true annual interest rate is 15%. What are Sue's monthly payments (principal plus interest) ? To the nearest penny, c = $. Total of payments = amount financed + c = $. Total of payments : number of payments = monthly payment = $.

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Neveah Thornton · Answer 1

The amount of her monthly payments would be $29.79.

Since she is paying $25 down, she is financing $550. Since this is a true interest rate, it includes compounding, so I will use the simple interest formula to find the amount of interest:

I=prt

I=550 (0.15) (2) = 165

Therefore the amount she will pay back will be 550+165=715.

Divide this by 24 to find the monthly payment:

715/24 = 29.79.