Earl purchased a living room set for $3,592 using a 12-month deferred payment plan. the interest rate after the introductory period is 21.80%. a down payment of $275 is required as well as a minimum monthly payment of $112. what is the balance after the introductory period if only the minimum payment is made until then?

The required answer is $2839.25.

Step-by-step explanation:

dollars

Plus down payment = dollars

Now, compound interest is found as:

p = 3592

r = 21.80% or 0.2180

n = 12

t = 1

Substituting the values in formula:

=>

A = $4458.25

So, Balance = dollars

Therefore, the required answer is $2839.25.

answer: the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

step-by-step explanation:

the given rate of interest i= 85%

in calculating the monthly payment for a loan with an interest rate compounded monthly, the value of the interest rate per period we use in the formula must be in decimal form.

to convert it in decimal, we divide it by 100, we get

hence, the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.