For the best terms on a loan or credit card, you need a credit score above 700.
ID: 2749891 • Letter: F
Question
For the best terms on a loan or credit card, you need a credit score above 700. To achieve this, start establishing credit now. Pay all of your bills on time. In addition, use only one-third of your available credit limit and pay off your revolving balance(s) each month. R.J.Johnson has excellent credit. She wants to purchase a piece of equipment for her business and was offered 5% for 48 months for the $51,000 unit.
What is her monthly payment by add-on method? (Round your answer to the nearest cent.)
For the best terms on a loan or credit card, you need a credit score above 700. To achieve this, start establishing credit now. Pay all of your bills on time. In addition, use only one-third of your available credit limit and pay off your revolving balance(s) each month. R.J.Johnson has excellent credit. She wants to purchase a piece of equipment for her business and was offered 5% for 48 months for the $51,000 unit.
Explanation / Answer
Interest = $51,000 * .5% * 4 = $1,020
Monthly Payment = $1,020 + 51,000/48 = $2,082.50