2. Raul and Josephine buy a plasma TV from Sparky's Electronics on an installment plan

(simple interest add on loan). They will pay the TV off in 3 years, paying 19.25% interest.

a. If the TV costs $1299.00, what will their monthly payments be?

b. If they make an $800 down payment up front, what will their payments be?

S. I=P*r/100*T

P=$1299.00

r=19.25%

T=3

=1299*19.25/100*3

=750.125

total money they will pay will be simple interest plus cost of tv set

=750.17+1299|=2049.17

in an year we have 12 month in 3 yrs it will be 12*3=36

per month they will pay 2049.17/36=56.92

$56.92

(b) if they pay 800 what will remain will be 1299-800=499

S. I=p*r/100*T

new p=499

rate and time remains

499*19.25/100*3=288.17

288.17+499=21.8659

=$21.87