Question 13 • FowU - Financial Math - B
Compare the monthly payments using the 18-month loan payment formula, with the APR divided by 12 for the monthly interest rate. Steve’s Scratch and Dent charges $405 at 22% APR, giving a payment of about $26.60 per month; the other stores’ payments are higher (about $29.40, $27.80, and $29.90, respectively). So Steve’s lower washer price outweighs its higher APR, and it gives Tom the smallest monthly payment.
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