The simple interest formula is A=P⁢(1+r⁢t) A student has purchased a new computer costing $⁢1,800 They put $⁢500 down and finance the rest with a 4% APR. They plan to pay off the balance over 6 months. Approximately how much will their monthly payment be?

After the $500 down payment, the amount financed is $1,800 − $500 = $1,300. Six months is 0.5 years, so the balance with simple interest is $1,300(1 + 0.04 × 0.5) = $1,326. Dividing by 6 gives a monthly payment of about $221, so the correct choice is 221 dollars.

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