If you buy a computer directly from the manufacturer for $3,509 and agree to repay it in 36 equal in

Discussion in 'Calculator Requests' started by math_celebrity, Jan 8, 2017.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    If you buy a computer directly from the manufacturer for $3,509 and agree to repay it in 36 equal installments at 1.73% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid?

    Determine the monthly payment
    The monthly payment is $114.87 using our annuity calculator

    Determine the total payments made
    Total payment is 36 times $114.87 = $4,135.37

    Now determine the total interest paid
    Take the total payments of $4,135.37 and subtract the original loan of $3,059 to get interest paid of $1,076.37
     

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