Answer:
B. $444.44
Step-by-step explanation:
We have been given that Andrew buys a home entertainment system from an electronics store offering 0% interest for 18 months. This means if she pays monthly payment she will not be charged with any interest for 18 months.
As Andrew will make 18 payments in 18 months, so payment for each month can be found by dividing total cost of entertainment system by 18.
[tex]\text{Minimum monthly payment}=\frac{\$8000}{18}[/tex]
[tex]\text{Minimum monthly payment}=\$444.44[/tex]
Therefore, Andrew should make a monthly payment of $444.44 to avoid paying deferred interest charges for the $8,000 system. and option B is the correct choice.
