Question 1204235
<font color=black size=3>
Answer: <font color=red size=4>$85.31</font>



Explanation



The fridge starts off at $1500
But then increases to 1500*1.05 = $1575 when adding on the sales tax.


P = loan amount = 1575
r = 0.15 = add on rate
t = 2 = number of years
A = total amount to pay back
A = P*(1+r*t)
A = 1575*(1+0.15*2)
A = 2047.50
Karen and Wayne must pay back $2047.50 in total.


Spread that total over 24 equal payments.
2047.50/24 = 85.3125 = <font color=red size=4>$85.31</font> is the monthly payment.


Further Reading
<a href = "https://www.finder.com/add-on-interest">https://www.finder.com/add-on-interest</a> 
and
<a href = "https://www.investopedia.com/terms/a/add-on_interest.asp">https://www.investopedia.com/terms/a/add-on_interest.asp</a>
</font>