Question

Susan's old refrigerator will no longer maintain an even coolingtemperature. However, she is not able to afford a new fridge right now.She finds a store willing to sell her a $1,938 fridge on an installment planwith only 11% down. The payments for the fridge over a 4 year period willbe $43.99 per month. What will be the total cost of the fridge includingfinance charges? Round your answer to the nearest cent. Do not include adollar sign in your answer.

Answer 1

`\text{ 2,324.70}`

Step-by-step explanation:

Here, we want to get the total cost of the fridge

She is to pay 11% of the cost as down payment

We have that value as:

`\text{ 11\% of 1938 = }(11)/(100)*1938\text{ = \$213.18}`

After paying this, there is to be a payment of $43.99 per month for 4 years. There are 12 months in a year. The number of months in 4 years will be 4 * 12 = 48 months

That would be a total of:

`\text{ = 48 }*\text{ \$43.99 = \$2,111.52}`

The total cost of the fridge would thus be:

`\text{ \$213.18 + \$2,111.52 = \$2,324.70}`