Question

SOS

I NEED HELP
Aaron purchased a living room set for $3,149 using an 18-month deferred payment plan with an interest rate of 20.29%. What is the balance after the deferment period if no payments are made?

$4,258.39

$3,149.00

$4,154.48

$3,787.93

Answer 1

$3,149 compounded monthly for 18 months at 20.29%
3,149 * (1+0.2029/12)^18
is equal to A, the first answer being $4,258.39

By the way, this is assuming that the interest is per year and the deferment period is accumulating interest.

Hope this helped!