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The Kelly Family purchased a backyard climber and swing set for their children at a cost of $3,198. They...

1. The Kelly Family purchased a backyard climber and swing set for their children at a cost of $3,198. They put $600 down and financed the balance at 12% for a year and a half. Find the amount of their monthly payment.

Answer

The Kelly Family financed $3,198 - $600 = $2,598. The interest rate per period for 18 periods at 12% annually is 1% per month. Using the factor from the table for 1% over 18 periods, which is 0.06098, the monthly payment is calculated as follows:

Monthly Payment = $2,598 * 0.06098 = $158.43

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