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You are considering the purchase of a large screen television The store, "See The Deal' is offering a special deal for first time buyers at the store ellipsis "See The Deal' will postpone your first monthly payment until the one year + one month (Month 13) anniversary of your initial purchase and then monthly payments continue for the following 3 years. The purchase price of the television is exist1, 250.00 and the APR interest it 12% per year, compounded monthly and beginning at the time of purchase with your final payment occurring at the end of 4 years (Month 48).
a. What is the monthly payment value that you are responsible for in this 48 Month "deal"?
b. What would your monthly payment value be if you decided not to wait the 13 months before you began paying your 3 year loan? Your first monthly payment would be one month after your initial purchase and your last payment would be Month 36.
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