Question
Alex purchased a new TV and a DVD player on September 1, 2019, for $1,500 and used his mom's credit card to pay for it.
Alex purchased a new TV and a DVD player on September 1, 2019, for $1,500 and used his mom's credit card to pay for it. His father agreed to allow Alex to use the card based on her paying the balance within one year. The nominal interest rate on the card is 24% compounded monthly and requires equal monthly payments. The first payment was on October 1, 2019.After six months of paying for these purchases, Alex decided, on March 1, 2020, that she also could purchase a stereo for $1,000. Alex's mom still insisted that he pay the total balance within one year from the date of the first purchase. Assume that the new purchase is to be immediately applied to the unpaid balance and Alex made the payment due at the beginning of March before purchasing the stereo. What is the amount of the payments for the first six months and the amount of the payments for the second six months?
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