Answer:
rate per month = .01 agreed = r
Luckily they only ask for the first month so it is 0.01 * 20 .
Later months get more complicated and it is like paying off a mortgage with the term unknown but the rate and payment known.
Payment = principal value [ r / {1-(1+r)^-n } ]
100 = 2000 [ .01 / {1 - (1.01)^-n } ]
5 = 1/ {1 - (1.01)^-n }
.2 = 1 - (1.01)^-n
.8 = 1.01^-n
log .8 = -n log 1.01
n = 22.4 months :)
so over the almost two years pay 2240 total :)
* Hopefully this helps:) Mark me the brainliest:)!!!
