Question

Using the examples above, answer the following questions. Alice Buyer purchased a computer for $345.95. She paid $100.00 down and agreed to pay $22.92 for 12 months.

She will finance $.

At the end of one year her monthly payments will total $.

To the nearest tenth, her APR will equal %.

Answer 1

345.95−100
=245.95

22.92×12
=275.04

((275.04−245.95)÷245.95)
×100
=11.8%

Answer 2

Answer:$245.95 b.$275.04 c.11.8%

Explanation:

Alice Buyer purchased a computer for $345.95. She paid $100.00 down and agreed to pay $22.92 for 12 months.

a.if the cost of the computer outrightly is $345.95, then she has $345.95- $100.00=$245.95

She will finance $245.95

b.therefore,she pays $22.92 back for a month ,for 12months she pays

12*$22.92=$275.04

At the end of one year her monthly payments will total $275.04

c.To get the APR

245/275.04*100%= 11.8%