A man bought his girlfriend a new necklace for $259. Instead of paying cash, he paid $19 down, financed the balance at 12% simple interest, and agreed to make monthly payments for 12 months. What will be the total cost of the necklace if he finances under these terms?

A man bought his girlfriend a new necklace for $259. Instead of paying cash, he paid $19 down, financed the balance at 12% simple interest, and agreed to make monthly payments for 12 months. What will be the total cost of the necklace if he finances under these terms?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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A man bought his girlfriend a new necklace for $259.
Instead of paying cash, he paid $19 down, financed the
balance at 12% simple interest, and agreed to make
monthly payments for 12 months. What will be the total
cost of the necklace if he finances under these terms?

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