10. jodie bought a leather couch at a special sale. the couch was sold for $960, and no down - payment was…

10. jodie bought a leather couch at a special sale. the couch was sold for $960, and no down - payment was required. jodie has to pay $70 a month for 2 years. what is jodies total interest paid?

10. jodie bought a leather couch at a special sale. the couch was sold for $960, and no down - payment was required. jodie has to pay $70 a month for 2 years. what is jodies total interest paid?

Answer

Explanation:

Step1: Calculate the total number of months

There are 2 years, and since 1 year has 12 months, the total number of months $n = 2\times12=24$ months.

Step2: Calculate the total amount paid in installments

Jodie pays $70 per month for 24 months. So the total amount paid in installments is $70\times24 = 1680$ dollars.

Step3: Calculate the total interest

The couch was sold for $960 (the principal amount). The total amount paid is 1680 dollars. The total interest $I$ is the total amount paid minus the principal amount. So $I=1680 - 960=720$ dollars.

Answer:

$720$