Question
Find the monthly interest payment in the situation below. Vic bought a new plasma TV for \( \$ 2300 \). He made a down payment of \( \$ 600 \) and then financed the balance through the store. Unfortunately, he was unable to make the first monthly payment and now pays \( 4 \% \) interest per month on the balance (while he watches his TV). What is Vic's monthly interest payment? \( \$ \square \) (Round to the nearest dollar as needed.)
Ask by Schmidt Guerrero. in the United States
Feb 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Vic's monthly interest payment is \$68.
Solution
Vic financed the amount of 2300 - 600 = 1700 dollars. With an interest rate of 4% per month, his monthly interest accrual is 0.04 × 1700, which equals 68 dollars.
Rounded to the nearest dollar, Vic's monthly interest payment is $68.
Answered by UpStudy AI and reviewed by a Professional Tutor
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The Deep Dive
First, let's calculate the balance that Vic financed after his down payment. The total price of the TV is \( \$ 2300 \), and he made a down payment of \( \$ 600 \), leaving him with a financed balance of \( \$ 2300 - \$ 600 = \$ 1700 \). Now, with an interest rate of \( 4\% \) per month, the monthly interest payment would be calculated as follows: \[ \text{Monthly Interest Payment} = \text{Financed Balance} \times \text{Interest Rate} = \$ 1700 \times 0.04 = \$ 68 \] Therefore, Vic's monthly interest payment is \( \$ 68 \).