Solve the problem.
-Tony and Barb decide to buy new living room furniture worth $6000. They make a down payment of $600. Barb decides they should pay off what they owe in 30 monthly payments. Find the amount
Of the monthly payment at 8% add-on interest.

Question

Quizplus · Accepted Answer

The total amount owed after the down payment is $5400. With 8% add-on interest, the interest amount is 8% of $5400, which is $432. The total amount to be paid back is $5400 + $432 = $5832. Dividing this by 30 months gives a monthly payment of $194.40, which is not an option. However, the calculation seems to have been misunderstood. The correct calculation for the monthly payment should consider the total cost including interest divided by the number of months. The error in the explanation points to a misunderstanding of the add-on interest calculation or a mistake in the arithmetic. Without the options aligning with the corrected calculation, the provided answer and explanation do not accurately solve the given problem.

Solve the Problem. -Tony and Barb Decide to Buy New Living Room Furniture