A computer with software costs $2,938, and Catherine Stevens has agreed to pay a 19% per year finance charge on the cash price. If she contracts to pay the loan in 18 months, how much will she pay each month?

She will pay 209.74056 each month

Step-by-step explanation:

firstly our cost of computer software = 2938

now the  percentage rate of the finance charge per 18 months will be

finance charge rate per 18 months = (rate/12) * 18 =  (19/12) * 18 = 28.5% = 0.285

now we find the finance charge

Finance charge = finance charge rate period * cash price

Finance charge = 0.285 * 2938 = 837.33

now we find the installment price

Installment price = finance charge + cash price

Installment price = 837.33 + 2938 = 3775.33

Installment payment = installment payments/number of payment (months)

Installment payment = 3775.44 / 18 = 209.74056

therefore she will pay a sum of 209.74056 each months.

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step-by-step explanation: