An $1,800 purchase is repaid in 12 equal monthly installments, with $216 of interest added over the term. What is each monthly payment?

Correct answer to question 42 (Arithmetic Reasoning): $168

Method

The buyer repays the price plus the interest, so the amount owed is 1,800 + 216 = $2,016. Spread over 12 months that is 2,016 divided by 12, or $168 each month. Dividing only the $1,800 gives $150 and forgets the interest.