when it says "the first payment is made at the date of signing" what type of annuity is it?
By the way this is the question
Mary purchases a home entertainment centre from Krazy-Krazy Appliance store. She paid $500 down and agreed to pay $94.37 per month for three (3) years. The first payment is made at the date of signing and interest is 22½% compounded monthly.
1. What is the purchase price?
2. How much is the cost of financing?
94.37 x 36 = 3,397.32 - (2500.40 +500) = 396.92
Does that look right?