Martin dennis brought a wide screen television for $1720. He made a down payment of 15% and paid the balance over 18 months. The fiance charge was 4% of the amount financed. Find the down payment and the installment price of the televison and the monthly payment

Question

Mathematics

Danika Erickson

25 November, 23:38

Martin dennis brought a wide screen television for $1720. He made a down payment of 15% and paid the balance over 18 months. The fiance charge was 4% of the amount financed. Find the down payment and the installment price of the televison and the monthly payment

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Sparky · Answer 1

Down payment is $258

Installment price is $1766.22

monthly payment is $83.79

Step-by-step explanation:

Down payment is 15% of $1,720 which is $258 (15%*$1720)

Monthly payment can be computed using pmt formula in excel

=pmt (rate, nper,-pv, fv)

rate is the interest rate per month which 4%/12=0.33%

nper is the number of months of payments that is 18

pv is the finance amount which is the price minus down payment i. e $1462 * ($1720-$258)

fv is the total finance amount plus interest which is unknown i. e 0

=pmt (0.33%,18,-1462,0) = $ 83.79

installment price = down payment + total repayment

=$258 + ($83.79*18) = $1766.22