Chloe Colburn bought appliances for her new apartment. The store allowed him to defer payments for six months (interest continues to accrue even though the payments were delayed) and then make 36 equal month-end payments. The original promissory note was $15,000 at 9% annual interest compounded monthly. After 26 months of paying off, Chloe considers taking out a bank loan to pay off her debts in one go. He would pay the bank $186 a month for the next 30 months.

1. a) Find the original monthly payment to the store.
2. b) Find the lump sum amount needed to get a loan from the bank.
3. c) How much interest does the bank apply to this loan per month???

Answer rating: 100% (QA)

ANSWER Original noteP 15000 number of paymentsn 36 annual rate of interest R 9 009000 monthly rate o... View the full answer