document.write( "Question 1095586: Sharon purchased a sprinkler system for $1,950 using a six-month deferred payment plan. The interest rate after the introductory period is 23.99%. No down payment is required, but there is a minimum monthly payment of $25. What is the balance at the beginning of the seventh month if only the minimum payment is made each month during the introductory period?
\n" ); document.write( "A $2,045.91
\n" ); document.write( "B $1,950.00
\n" ); document.write( "C $2,195.91
\n" ); document.write( "D $1,800.00 \n" ); document.write( "

Algebra.Com's Answer #710089 by jim_thompson5910(35256) $\"\"$ $\"About$

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If you pay a minimum monthly payment of $25 for six months, then you pay a total of 6*25 = 150 dollars\r
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\n" ); document.write( "\n" ); document.write( "Subtract this from the balance of 1950 to get 190-150 = 1800\r
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\n" ); document.write( "\n" ); document.write( "So $1,800.00 is the balance at the beginning of the seventh month. \r
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\n" ); document.write( "\n" ); document.write( "Note: No interest is paid or charged during the initial 6 month period. After these six months, the interest rate jumps to 23.99% which is very high. This is why it is encouraged to pay off any balances on high interest accounts (such as credit cards). \n" ); document.write( "

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