Question

Sam purchased a new refrigerator for $1099.99, making a $200 down payment and financing the rest over a 2-year period. Approximately, what will be his monthly payment?

a. $37.50
b. $41.66
c. $45.83
d. $50.00

Answer 1

Sam will make a monthly payment of approximately $37.50 after making a $200 down payment and financing the remaining amount over a 2-year period. Therefore, the correct answer is a. $37.50.

Step-by-step explanation:

The student's question is asking for the calculation of the monthly payment for a refrigerator purchase. Sam purchased a new refrigerator for $1099.99, made a $200 down payment and financed the remaining amount over a 2-year period. To calculate the monthly payment, first we find the amount that was financed: $1099.99 - $200 = $899.99. This amount will be divided over 24 months, as there are 2 years in the financing period and 12 months in a year. The monthly payment is calculated as: $899.99 / 24 = $37.50 approximately. Therefore, the correct answer is a. $37.50.