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 127.50 a month for 2 years. How much INTEREST will you pay to finance this?Cost of Computer and Printer: 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
Solution
Step 1: Calculate the total payment over the 2 years (24 months) period.
Total payment = Monthly payment * Number of months Total payment = 3060
Step 2: Calculate the total interest paid.
Total interest = Total payment - Original price Total interest = 2300 Total interest = $760
So, you will pay $760 in interest to finance the computer and printer.
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