Andrew buys a home entertainment system from an electronics store offering 0% interest for 18 months. Calculate the average monthly payment she should make to avoid paying deferred interest charges for the $8,000 system.

Andrew would need to make payments of $444.44 per month to avoid paying any deferred interest charges over the 18-month promotional period.

To calculate the average monthly payment that Andrew should make to avoid paying deferred interest charges for the $8,000 home entertainment system, we need to first determine the total amount that Andrew would need to pay over the 18-month period. Since the interest rate is 0%, the total cost of the system would be the same as the purchase price, which is $8,000.

Dividing the total cost by the number of months in the promotional period gives us the average monthly payment:

$8,000 / 18 months = $444.44 per month

It's important to note that while there may be no interest charges during the promotional period, there may still be fees or penalties for late payments or early repayment of the balance. It's important for Andrew to review the terms and conditions of the promotion and to make sure he is able to make the required payments on time to avoid any fees or penalties. Additionally, if the full balance is not paid off by the end of the promotional period, interest charges may begin to accrue, so it's important to have a plan in place to pay off the balance before the promotional period ends.

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A credit card holder owes $5,498 on a credit card with a 26. 99% interest rate compounded monthly. Assuming no additional purchases are made with the card, what is the monthly payment the cardholder should make to pay off the debt in 5 years? round your answer to the nearest penny. A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used.