Question

4. Vivian financed a new $1,250 television at 13.5% for 54 months. How much will she have to pay every month to pay this off?$

Answer 1

To determine the payment for a TV set :

`I=(PRT)/(100)`

Principal = $1250

Rate = 13.5%

Time = 54 months

`\begin{gathered} \text{Interest = 13.5 \% of \$1250} \\ \text{Interest = }(13.5)/(100)\text{ x \$1250} \\ \text{Interest = \$168.75} \end{gathered}`

Amount = Interest + Principal

`\begin{gathered} \text{Amount = interest + principal} \\ \text{Amount = \$168.75 + \$1250} \\ \text{Amount }=\text{ \$1418.75} \end{gathered}`
`\begin{gathered} Payment\text{ per month =}\frac{\text{\$1418.75}}{54} \\ Payment\text{ per month = \$26.2}7 \end{gathered}`

She will have to pay $26.27 every month inorder to pay clear off