Question

Justine purchased computer software for $5,200. With a down payment of $1,000, she wa

finance the balance at 12% for 6 years. Find the semiannual payments. Use the table on
$964.36
$620.26
$500.98
$3,699.02

Answer 1

The semi annual payment is $4144.95

Explanation:

Given as :

The price of computer software = $5,200

The down payment amount = $1000

So, The rest amount after down payment = $5,200 - $1,000 = $4,200

Now, The principal amount of finance = p = $4,200

The rate of interest = r = 12%

The time period of loan = t = 6 years

Let The Amount after 6 years = $A

Now, From compounded method

Amount = Principal ×
`(1+(\textrm rate)/( 100))^( \textrm time )`

Or, A = p ×
`(1+(\textrm r)/( 100))^( \textrm t )`

Or, A = $4,200 ×
`(1+(\textrm 12)/(100))^( \textrm 6 )`

Or, A = $4,200 ×
`(1.12)^(6)`

Or, A = $4,200 × 1.9738

∴ A = $8289.9

So, The semi annual payment =
`(\textrm Amount)/(2)`

Or, The semi annual payment =
`(\textrm 8289.9)/(2)`

∴ The semi annual payment = $4144.95

Hence, The semi annual payment is $4144.95 Answer