Question

4. Vivian financed a new $1,250 television at 13.5% for 54 months. How much will she have to pay every month to pay this off?$

Answer 1

To determine the payment for a TV set :

$I=\frac{PRT}{100}$

Principal = $1250

Rate = 13.5%

Time = 54 months

$\begin{gathered} \text{Interest = 13.5 \% of \ 1250} \\ \text{Interest = }\frac{13.5}{100}\text{ x \ 1250} \\ \text{Interest = \ 168.75} \end{gathered}$

Amount = Interest + Principal

$\begin{gathered} \text{Amount = interest + principal} \\ \text{Amount = \ 168.75 + \ 1250} \\ \text{Amount }=\text{ \ 1418.75} \end{gathered}$$\begin{gathered} Payment\text{ per month =}\frac{\text{\ 1418.75}}{54} \\ Payment\text{ per month = \ 26.2}7 \end{gathered}$

She will have to pay $26.27 every month inorder to pay clear off