Wyatt purchased a living room set for $4,109 with an 18-month deferred payment plan. THe interest rate on the plan was 27.41%. The living room set must be paid off within three years after the deferment period. What is the total cost of the living room set if she made no payments during the deferment period and made only minimum payments after the deferment period?
If the deferment period is interest free, then this is what you do:
1) calculate the monthly payment on the loan of $4,109 @ 27.41% comp. monthly over a period of 3 years or 3 x 12 =36 months.
2) Then multiply the monthly payment X 36 =total cost of the living room set.
3) When you calculate your monthly payment, you should get =$168.66
4) You must verify my calculation by calculating it yourself and see if we agree.
