Earl Miller plans to buy a boat for $19,500 with an interest charge of $2,500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, can he afford the boat?

Question

Quizplus · Accepted Answer

Add the amount borrowed and the interest charge to get $19,500 + $2,500 = $22,000. Divide by 36 to get $611.11. Since this is less than $650, he can afford the payments.

Earl Miller Plans to Buy a Boat for $19,500 with an Interest