Complete question :
Becky purchased a home entertainment center for $2,254 using an 18-month deferred payment plan with an interest rate of 22.48%. She did not make any payments during the deferment period. What will Becky's monthly payment be if she must pay off the home entertainment center within three years after the deferment period?
Answer:
$76.69
Explanation:
Given that :
Purchase price = $2254
Interest rate = 22.48% = 0.2248
Payment period = 3 years
Number of months = 12 * 3 = 36 months
Monthly payment :
Total amount to be paid = Purchase price + interest on amount
Total amount to be paid :
2254 + (0.2248*2254) = 2760.6992
Monthly payment :
2760.6992 / 36
= 76.686088
= 76.69