SOLUTION: You purchased a laptop computer worth PhP 28,998 by a 30% down payment and agreed to repay the balance in 18 equal monthly payments. There is a 0% simple interest rate on this ba

Question 1205957: You purchased a laptop computer worth PhP 28,998 by a 30% down
payment and agreed to repay the balance in 18 equal monthly payments.
There is a 0% simple interest rate on this balance.
Find the finance charge
Find the amount of monthly payments
Estimate the APR
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
price of the computer is 28,998.
30% down payment is .3 * 28,998 = 8699.4.
amount to be financed is 28998 minus 8699.4 = 20298.6
if there is 0% finance charge on this loan, then the finance charge is 0.
the monthly payments will be 20298.6 / 18 = 1127.7.

not sure if you meant 0% simple interest rate.
please check you problem again to see what the interest rate needs to be.

the formula for simple interest is i = p * r * n
i is the interest.
p is the principal
n is the number of time periods.

for example, assume the simple interest rate per year is 12%.
that would be .12 interest rate per year.
divide that by 12 to get .01 interest rate per month.
the amount to be financed is the same at 28998 minus .3 * 28998 = 20298.6
the formula becomes i = 20298.6 * .01 * 18 = 3653.748.

the finance charge would be 3653.75 rounded to the nearest penny.
that is added to the principal to get 20298.6 + 3653.75 = 23952.35 that is owed.
divide that by 18 to get 23952.35 / 18 = 1330.686111 per month.
round that to 1330.69 and that's the monthly payment.

you would pay 1330.69 per month for 18 month.
the total payments would be 23952.42.
subtract that from 23952.35 that was owed and the difference is 7 cents that you over paid.
you might get the bank to pay you that back so the books would balance.
not sure how they would handle it.
the difference is in the rounding.

that's if the interest rate was 12% per year.
not sure what it is.
you showed 0%.

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