Question

Julio buys a bike which has a cash price of $250. He agrees to take a one year loan for the entire
amount at 27%, payable in 12 installments. After 8 ofthe 12 payments, he gets some birthday
money and decides to pay off his loan. Find the unpaid balance.

Answer 1

27% means of whole amount not monthly or year
27% of 250=67.5
Amount to pay =250+67.5=317.5

317.5x4/12=105.833
This unpaid balance