Question

Brian agreed to purchase a TV on an installment plan. The purchase price is $900. The interest rate is 6.5% and he will make monthly payments for 3 years. How much is each payment?

A)$8
B)$7.86
C)$6.78
D)$6

Answer 1

To calculate the monthly payment for Brian's TV purchase, we can use the formula for calculating the monthly payment on an installment plan: P = (r * A) / (1 - (1+r)^(-n)). Plugging in the values, we get: P = (0.065 * 900) / (1 - (1 + 0.065)^(-36)) = $7.86. Therefore, each monthly payment for Brian's TV purchase is $7.86.

Step-by-step explanation:

To calculate the monthly payment for Brian's TV purchase, we can use the formula for calculating the monthly payment on an installment plan:

P = (r * A) / (1 - (1+r)^(-n))

Where:

• P is the monthly payment
• r is the monthly interest rate (6.5% converted to decimal form)
• A is the purchase price ($900)
• n is the number of months (3 years * 12 months)

Plugging in the values, we get:

P = (0.065 * 900) / (1 - (1 + 0.065)^(-36)) = $7.86

Therefore, each monthly payment for Brian's TV purchase is $7.86.