How to Calculate Monthly Payment for a Refrigerator Loan
What is the situation of Karen and Wayne?
What loan offer do they have from Home Depot?
What is the cost of the refrigerator at Home Depot?
How long do Karen and Wayne plan to pay for the refrigerator?
What is the add-on rate for the loan?
Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Home Depot offers them an installment loan at 15% (add-on rate).
Karen and Wayne find themselves in need of a new refrigerator after their old one broke down. With their savings account empty, they decide to borrow money to purchase a new refrigerator. Home Depot comes to the rescue with an installment loan offer at a 15% add-on rate.
The refrigerator at Home Depot costs $1598, and Karen and Wayne plan to pay for the refrigerator over a period of 3 years. This means they will have to make monthly payments to cover the cost of the refrigerator and the interest incurred from the loan.