Question

Harry Dixon is purchasing a new refrigerator with an installment loan that has an APR of 18%. The refrigerator sells for $989.99. He agrees to make a 20% down payment and 12 monthly payments. What is the finance charge?

Answer 1

Answer:

1.- Made an initial payment of $ 49.95.

2.- And I pay 12 monthly installments, each of $ 78.34

Step-by-step explanation:

He 20% of 989.99 is: 49.95

And 989.99 minus 49.95 is: 940.04

Finally 940.04 divided by 12 is: 78.34