Question

Lenny Lendee purchased a snowblower for $199.95. He paid 25% down and agreed to pay $14.99 for 12 months.

Answer 1

$199.95 x 25% = $199.95 x .25 = $49.9875 ~ $49.99
$199.95 - 49.99 = $149.96 (actual balance) If Lenny pay $14.99 for 12 months the total payment would be: $14.99 x 12 =$179.88
Lenny would have paid an additional amount of $29.92 ($179.88 - 149.96) after making the final payment.

I hope this helps since you did not mention what you were calculating, so I include everything that can be done to this problem.

Answer 2

Hi there!

His 25% down payment was $ 49.99.
So he will finance $ 149.96.
At the end of one year, his monthly payments will total $ 179.88.
To the nearest tenth, his APR = 29.92 ÷ 149.96 = 20.0%.

Your friend, ASIAX