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19 January, 18:07

Joe Football buys a big screen TV. The price, including tax, amounts to $1,950.00. Joe finances the TV over 24 months after making a $200 down payment. The true annual interest rate is 16%. What are Joe's monthly payments (principal plus interest) ?

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  1. 19 January, 18:19
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    Amount financed

    1,950-200=1,750

    Total interest

    (0.16*1,750*25) : (2*12) = 291.67

    Total paid

    291.67+1,750=2,041.67

    Monthly payments

    2,041.67:24=85.07
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