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Show Your Work!!The regular cost of a new computer with a laser printer is $2300. Best Buy says they will finance it for you $127.50 a month for 2 years.  How much INTEREST will you pay to finance this?Cost of Computer and Printer: $2300Financing Terms: $127.50 per month for 2 yearsTime period for payments = 2 years = 24 monthsTotal paid = $127.50/month × 24 months = Total interest = Total payment - Original price

Question

Show Your Work!!The regular cost of a new computer with a laser printer is 2300.BestBuysaystheywillfinanceitforyou2300. Best Buy says they will finance it for you 127.50 a month for 2 years.  How much INTEREST will you pay to finance this?Cost of Computer and Printer: 2300FinancingTerms:2300Financing Terms: 127.50 per month for 2 yearsTime period for payments = 2 years = 24 monthsTotal paid = $127.50/month × 24 months = Total interest = Total payment - Original price

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Solution

Step 1: Calculate the total payment over the 2 years (24 months) period.

Total payment = Monthly payment * Number of months Total payment = 127.50/month24monthsTotalpayment=127.50/month * 24 months Total payment = 3060

Step 2: Calculate the total interest paid.

Total interest = Total payment - Original price Total interest = 30603060 - 2300 Total interest = $760

So, you will pay $760 in interest to finance the computer and printer.

This problem has been solved

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