Installment Math Problems

1. Clare wants to buy a wide-screen TV that sells for $2,000 cash. She will make a down payment of $1,000 and then six monthly payments of $200. What is the full installment price and the annual interest rate? 

Applying the 20/10 Rule:  If Clare has a net monthly income of $1,400, and already pays $100 per month for a furniture installment loan, would you recommend that she purchase the TV?  (Use the 20/10 Rule to guide you)  Why or why not?  Show your calculations.

2. Miguel has his heart set on a new GPS that will cost him $325 if he pays cash and $400 if he pays by installments. If the down payment is $50, how much will he pay in each of 12 monthly payments? 

Applying the 20/10 Rule: Miguel currently earns $8,000 per year.  He also is paying on a used car with an existing installment loan at $100 per month.  Does the GPS installment loan fit within safe debt guidelines using the 20/10 rule?  Show your calculations.