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6 May, 04:55

Ravonda purchased a ring costing $30,000 by taking out a 5.5% add-on installment loan. The loan requires a 25% down payment and equally monthly payments for 4 years. How much are her monthly payments?

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  1. 6 May, 05:02
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    She has to pay $503.125 monthly till 4 years

    Step-by-step explanation:

    Cost of the ring = $30000

    Add on = 5.5% of the cost of the ring

    = (5.5 x 30000) / 100

    = $1650

    Down payment = 25% of the cost

    = (25 x 30000) / 100

    = $7500

    Time = 4 years

    Loan amount = 30000 - 7500

    =$ 22500

    Total amount to pay = 22500 + 1650

    = $24150

    Monthly instalment = 24150 / (4 x 12)

    = $503.125

    She has to pay $503.125 per month till 4 years.
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