Given:
Costing = $400
Simple interest = 6%
Finance charge = $48
Simple interest formula is:
[tex]\begin{gathered} =\frac{P\times R\times T}{100} \\ \end{gathered}[/tex][tex]\begin{gathered} \frac{P\times R\times T}{100}=48 \\ \frac{400\times6\times T}{100}=48 \\ T=\frac{48\times100}{400\times6} \\ T=2 \end{gathered}[/tex]For 2 year.
(b)
Monthly payment is:
[tex]\begin{gathered} =\frac{400}{24}+\frac{48}{24} \\ =16.66+2 \\ =18.66 \\ \end{gathered}[/tex]Monthly payment is $18.66
