Answer:
To calculate the monthly payment for the TV after the discount, sales tax, and financing, we need to follow these steps:
Step 1: Calculate the discount
Discount = 25% of $987.48
Discount = 0.25 x $987.48
Discount = $246.87
Step 2: Calculate the discounted price of the TV
Price after discount = $987.48 - $246.87
Price after discount = $740.61
Step 3: Calculate the sales tax
Sales Tax = 6.5% of $740.61
Sales Tax = 0.065 x $740.61
Sales Tax = $48.15
Step 4: Calculate the total cost of the TV after discount and sales tax
Total cost = Price after discount + Sales Tax
Total cost = $740.61 + $48.15
Total cost = $788.76
Step 5: Calculate the monthly payment on the 2-year loan with 15.6% annual interest rate using the following formula:
Monthly Payment = (P x r) / (1 - (1 + r)^(-n))
where P is the principal (total cost of the TV), r is the monthly interest rate (15.6% / 12), and n is the number of months (24).
Monthly Interest Rate = 15.6% / 12
Monthly Interest Rate = 0.013
Monthly Payment = ($788.76 x 0.013) / (1 - (1 + 0.013)^(-24))
Monthly Payment = $36.89
Therefore, the monthly payment on the 2-year loan for the TV is $36.89.
Explanation: