Question

Assume you call a customer who has a balance of $3585.26. They are required to pay 20% down and 6 equal payments of remainder amount. What should the 20% down and remainder payment amounts be?

Answer 1

To compute for the 20% down,

`\text{ }\frac{\text{Balance x \% of Down to pay}}{100\text{\%}}`
`\frac{\text{ (\$3,585.25)}(20\text{ \%)}}{100\text{ \%}}\text{ = (\$3,585.26)}(0.20)\text{ = \$ 717.05}2\text{ }\cong\text{ \$ 717.05}`

To solve for the remaining payment,

`\text{Balance - 20\% Down = Remaining Payment}`
`\text{ \$3,585.26 - \$717.05 = Remaining Payment}`
`\text{ Remaining Payment = \$ 2,868.21}`

When divided into 6 equal payments,

`\frac{\text{Remainder }Payment\text{ }}{6}\text{ =}\frac{\text{ \$ 2,868.21}}{6}\text{ = \$478.035}`