Question

Maddie decides to buy a computer marked at $4500. She pays 20% deposit and the balance over 2 years with simple interest charged at 14% p.a, on the balance. Find the monthly repayment. What’s the answer?

Answer 1

$192 per month

Explanation:

Deposit is 20% of $4500 = $900

4500 - 900 = 3600

14% of 3600 = 504 per annum

504 x 2 years = 1008

3600 + 1008 = 4608

4608 divided by 24 months = $192

Answer 2

Explanation:

Given :

Cost of computer → $4500.

Deposit balance over 2 years → 20%.

S.I. → 14% P.a.

To find : Monthly Repayment?

Solution :

Deposit = 20/100×4500 = 900.

Remaining deposits = 4500-900 = 3600.

S.I. ⇒ 14% of 3600 → 14/100×3600 = 504 P.a.,

Balance over 2 years → 504 × 2 = 1008.

On adding,

Balance of 2 years and Remaining balance = 1008 + 3600 = 4608.

Now,

We have to find the repayment of monthly of 2 years are as :

On dividing 4608 by 24 months (2 years) ↓

⇒ 4608/24 = $192(Answer)!

Hope its helpful for you dear!