Sue Stitch buys a sewing machine. The price, including tax, is $575.00. She finances the sewing machine over 24 months after making a $25 down payment. The true
Question
To the nearest penny, c = $
Total of payments = amount financed + c = $
Total of payments ÷ number of payments = monthly payment = $
2 Answer

1. User Answers ASIAX
Hi there!
To the nearest penny, c = $85.94.
Total of payments = amount financed + c = $635.94.
Total of payments ÷ number of payments = monthly payment = $26.50
Your friend, ASIAX 
2. User Answers wagonbelleville
Answer:
c = $85.94
Total payment = $635.94
Total payment ÷ Number of payment = $26.5.
Stepbystep explanation:
We are given that,
The tax on the machine = $575 with down payment = $25. Also, the rate of interest = 15% i.e. 0.15 and time period = 24 months.
Now, the principal amount = tax  down payment = $575  $25 = $550.
Then, the monthly payment by the annuity formula is given by,
[tex]c=\frac{r \times PV}{1(1+r)^{n} }[/tex]
i.e. [tex]c=\frac{0.15 \times 550}{1(1+0.15)^{24} }[/tex]
i.e. [tex]c=\frac{82.5}{1(1.15)^{24} }[/tex]
i.e. [tex]c=\frac{82.5}{10.035 }[/tex]
i.e. [tex]c=\frac{82.5}{0.965}[/tex]
i.e. [tex]c=85.94[/tex]
Hence, c = $85.94
Thus, total payment = amount financed + c = $550 + $85.94 = $635.94.
So, Total payment ÷ Number of payment = [tex]\frac{635.94}{24}[/tex] = $26.5.