Balance payment

[kathyp]

I have a balance of $1,704.12 and I have to make a payment of 5% of the total balance. How do I determine my payment each month?

 

[Deleted member 4993]

I have a balance of $1,704.12 and I have to make a payment of 5% of the total balance. How do I determine my payment each month?

What is 5% of 1704.12? ← this is your first payment.

Subtract your first payment from 1704.12 ← this is your new balance

What is 5% of your new balance? ← This is your second payment .... and continue

 

[kathyp]

What is 5% of 1704.12? ← this is your first payment.
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Subtract your first payment from 1704.12 ← this is your new balance

What is 5% of your new balance? ← This is your second payment .... and continue

I still do not understand. Please show me an example.

 

[JeffM]

I still do not understand. Please show me an example.

It is impossible to show you an example because we do not know what the specific question really is. If no interest is being charged and you are to make equal monthly payments equal to 5% of the initial amount due, that problem has a single answer. If no interest is being charged and you are to make monthly payments equal to 5% of the declining balance, the answer differs for each month. If interest is being charged, we also need to know the rate of interest. In short, you have not asked a clear enough question to determine an answer. How EXACTLY does your text book state the problem?

 

[HallsofIvy]

I still do not understand. Please show me an example.

He is saying "multiply by .05." That is what "5%" means!