Question

Deborah purchases a Copy Machine for her business, using the Installment-Buying method, the price tag on the copier is55000 with add-on-interest of 7% for 3 years.FindThe Monthly Payment(round to the nearest hundredths)

Answer 1

The price of the new Copy Machine is

P = $5000

The interest is calculated by the formula:

I = P.r.t

Where r is the interest rate and t is the time, thus:

I = 5000 * 0.07 * 3

I = 1050

Thus the total payment, including interest is:

M = 5000 + 1050 = 6050

The monthly payment is calculated as the total payment divided by the number of months: 6050 / 36 = 168.06

Deborah must pay $168.06 each month for 3 years to pay the machine