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Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account...


Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 14% (add-on rate). If the refrigerator at Sears costs $1,538 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.)
1. Smith NM13 11.2.059. Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings ac
1. Smith NM13 11.2.059. Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 14% (add-on rate). If the refrigerator at Sears costs $1,538 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.) $ Grade This Show Answers Try Again
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Answer #1

We see that the monthly payment is given as equal to
=1538*1.05*(1+14%*3)/(12*3)
=63.6988333

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