Question

If you buy a computer directly from the manufacturer for $ 2 comma 535and agree to repay it in 60equal installments at 1.81 %interest per month on the unpaid​ balance, how much are your monthly​ payments? How much total interest will be​ paid?

Answer 1

monthly​ payments is $69.61

Total interest paid = $1641.6

Step-by-step explanation:

given data

buy computer = $2535

equal installments = 60

interest per month = 1.81 % = 0.0181

solution

we get here Monthly installments payments that is express as

EMI =
`(P * r * (1+r)^t)/((1+r)^t-1)` ................1

put here value and we get

EMI =
`(2535 * 0.0181 * (1+0.0181 )^(60))/((1+0.0181 )^(60)-1)`

EMI = 69.610

so monthly​ payments is $69.61

and

Total interest paid is express as

Total interest paid = (no. of installment × EMI) - Loan amount

Total interest paid = (60 × 69.61) - 2535

Total interest paid = $1641.6