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we will now consider an example using the installment payment formula recall that we learned the installment payment formula earlier in this section to review the formula is shown on the screen recall that M is the installment payment P is the amount financed R is the interest rate as a decimal n is the number of payments per year and T is the time in years so lets look at an example Kristin wishes to purchase new window blinds for her house at a cost of $1,500 the home-improvement store has an advertised finance option of no down payment and 6 percent APR for 24 months determine Kristins monthly payment so lets look at our example and lets identify what our variables stand for recall that p is the amount financed so in our example Krista is going to finance the cost of the blinds which is $1,500 so P will equal 1,500 R is the interest rate as a decimal so we see that the interest rate is 6 percent and 6 percent written as a decimal is going to be point zero 6 n is the number of pa