Extracted text: A couple buys $8000 worth of furniture and takes advantage of the...

Question

Extracted text: A couple buys $8000 worth of furniture and takes advantage of the furniture
company's "don't pay a cent for 1 year" plan. Exactly one year after buying the
furniture, they make the first of 18 monthly payments of R to pay for the furniture.
If the interest rate is j12 = 12%, what is R?

Aditi · Accepted Answer

SOLUTION
According to the information provided, the furniture was purchased for $8000.
The interest rate is 12% annually.
Compound interest is calculated using the balance at the conclusion of a year.
In the compound interest formula, change P, r, and n to 8000, 0.12, and 12, respectively.

A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly...

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