Answer :
Step 1
Given;
[tex]An\text{ amount of \$1150 for a television financed at \$10 for 6 months}[/tex]Required; To find how much will be paid every month to pay off the bill.
Step 2
State the formula for monthly payment
[tex]A=P\frac{r(1+r)^n}{(1+r)^n-1}[/tex]where,
[tex]\begin{gathered} A=\text{ }payment\text{ amount per period} \\ r=interest\text{ rate per period =}\frac{10}{100}=\frac{0.1}{12}=\frac{1}{120} \\ P=\text{ initial principal}=\text{ }1150 \\ n=\text{ }36 \end{gathered}[/tex]Step 3
Find the amount paid per month
[tex]\begin{gathered} A=1150(\frac{\frac{1}{120}(1+\frac{1}{120})^{36}}{(1+\frac{1}{120})^{36}-1}) \\ A=1150(\frac{0.011234848}{0.348181842}) \\ A=37.10726301 \\ A\approx\text{\$}37.11\text{ } \end{gathered}[/tex]Therefore, Diana will pay approximately $37.11 each month until she pays off
