Question

Jie purchased a computer priced at $1028.27, financing it by paying $73.66 on the date of purchase, and signing a contract to pay equal monthly payments over the mext twelve months. If the terms of the contract state that interest is calculated at 10.3% compounded monthly, how much does jie have to pay at the end of each month?

Answer 1

Answer:

$75.8648

Step-by-step explanation:

topic: mathematics of finance

formula:. p.v=A[(1+i)^n - 1]/ i

{ p.v=present value,. A= monthly payment,. n=no.of periods,. i=rate }

here,A = ?, n= 12, p.v =1028.27 - 73.66=$954.61. (deduct downpayment)

i= R/1200 = 10.3/1200 =0.008583333

on substitution of values in the formula,

954.61= A[{(1.008583333 )^12} -1]/ 0.008583333

on simplifying.,

954.61 = A[12.58303]

A= $75.8648