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Anna purchased new bedroom furniture, including a mattress, for $6,280. Her downpayment was $800, and she...

6. Anna purchased new bedroom furniture, including a mattress, for $6,280. Her downpayment was $800, and she financed the balance at 18% for 4 years. Find the amount of her monthly payment.

Answer

First, calculate the financed amount: $6,280 - $800 = $5,480.

Next, find the monthly interest rate: 18% annually is 1.5% per month.

Using the table, the interest rate per period for 1.5% over 48 periods is 0.02938.

Calculate the monthly payment: $5,480 * 0.02938 = $161.00.

Answer: $161.00

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