Question

Barbara wants to buy a washing machine. She finds a store that has a promotion where they will finance the washing machine with no money down and no interest if paid in full within 18 months. The minimum monthly payment is $30 per month. If the washing machine costs $3,500 and Barbara makes only the minimum payment, how much will she have to pay at the end of the 18 months?

Answer 1

Barbara will have paid $540 by making $30 monthly payments over 18 months. She would then owe $2,960 at the end of the 18 months to fully pay off the $3,500 washing machine.

Step-by-step explanation:

If Barbara makes only the minimum payment of $30 per month on a washing machine costing $3,500, she will have paid 18 months x $30/month = $540 at the end of the 18 months. Since the full price of the washing machine is $3,500, after making the minimum payments for 18 months, she will owe $3,500 - $540 = $2,960 at the end of the promotional period.