Karolyn takes out an installment loan to finance the purchase of a violin costing $14,750. Her loan requires a 10.625% down payment and equal monthly payments of $355 for 48 months. Calculate the total deferred payment price.

Question

Quizplus · Accepted Answer

The total deferred payment price includes the down payment plus the total of all monthly payments. The down payment is 10.625% of $14,750, which is $1,566.88. The total of all monthly payments is $355 * 48 = $17,040. Therefore, the total deferred payment price is $1,566.88 + $17,040 = $18,606.88, which rounds to $18,607.19.

Karolyn Takes Out an Installment Loan to Finance the Purchase