Question

An item is purchased for $2500 with a down payment of $500. There is a finance charge of

$ 150

Find the monthly payment if 20 payments are made. Round the answer to the nearest cent.

Step 1

Purchase Price = $2,500

Down Payment = $500

Calculation of Loan Amount (PV):

Step 2

Loan Amount = $2,000

Finance Charge = $150

Calculation of Interest Rate:

Step 3

Loan Amount (PV) = $2,000

Interest rate (rate) = 7.5%

Number of Payments (nper) = 20

Calculation of monthly installments us...

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