Final answer:
To calculate Claire's monthly payment for the refrigerator with a 12.5% APR over 36 months, convert the APR to a monthly rate, and apply the formula for an amortized loan payment.
Step-by-step explanation:
To determine Claire's monthly payment for financing a refrigerator at an APR of 12.5% over 36 months, we need to use the formula for calculating the fixed monthly payment on an amortized loan which is P = [rPV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate, n is the number of payments, and PV is the present value or amount of the loan.
The APR needs to be converted to a monthly rate by dividing by 12, therefore r = 12.5% / 12 = 1.0416667%, and n = 36 months. PV is the cost of the refrigerator, which is $2800. Inserting these values into the formula provides us with Claire's monthly payment.