Question 3 A different electric scooter retail outlet offers an alternative payment plan for the type of scooter Nate wants to own. The purchase price is $2100, not $1700. Nate would be able to take the scooter home without paying a deposit on the understanding that monthly payments over 2 years would be required. Interest would be charged at a rate of 12% pa compounded monthly. The monthly repayment is calculated from the annuities formula: Q(R" -1) = PR" — A" R — 1 a State the values of P, R and n. b By substituting into the formula, show that the monthly repayment has to be $98.85 Show your working. 6 Use the formula to find the amount still owing after one year of repayments. Show your working. Give your answer to the nearest cent. d If Nate decided to accept this plan, how much interest would he end up paying over the term of the loan? Give your answer to the nearest cent.



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