unit 4 assignment 2 consumer credit\n6. zane bought a $2,300 surround - sound system on an installment plan…

unit 4 assignment 2 consumer credit\n6. zane bought a $2,300 surround - sound system on an installment plan. he made a $450 down payment, and he must make monthly payments of $93.50 for the next two years. how much interest will he pay?\n7. gary is buying a $1,250 computer on the installment plan. he makes a down payment of $150. he must make monthly payments of $48.25 for 2 1/2 years. how much will gary pay in interest?\n8. enrique bought a drum set for $2,100 on an installment plan. he made a $50 down payment and will make monthly payments of $90 for 2 years. how much interest will he pay?\n9. jimmy bought a couch for $760. no down payment was required. jimmy must pay $60 per month for the next 1 1/2 years. how much interest will he pay?\n10. travis purchased a computer with nothing down and zero interest. the purchase price of the computer is $2,300. he is required to make $50 monthly payments with the balance due at the end of 1 year. what will be the amount of the final payment?

Answer

Explanation:

Step1: Calculate total amount paid

For each problem, first find the total amount paid in installments by multiplying the monthly - payment by the number of months.

Step2: Calculate principal amount

Subtract the down - payment (if any) from the purchase price to get the principal amount.

Step3: Calculate interest

Subtract the principal amount from the total amount paid to find the interest.

Problem 6:

The purchase price of the surround - sound system is $2300$, and the down - payment is $450$. So the principal amount $P = 2300−450=1850$.
The monthly payment $m = 93.50$, and the number of months $n = 2\times12 = 24$. The total amount paid $A=m\times n=93.50\times24 = 2244$.
The interest $I=A - P=2244−1850 = 394$.

Problem 7:

The purchase price of the computer is $1250$, and the down - payment is $150$. So the principal amount $P = 1250−150 = 1100$.
The monthly payment $m = 48.25$, and the number of months $n=2.5\times12 = 30$. The total amount paid $A=m\times n=48.25\times30 = 1447.5$.
The interest $I=A - P=1447.5−1100 = 347.5$.

Problem 8:

The purchase price of the drum set is $2100$, and the down - payment is $50$. So the principal amount $P = 2100−50 = 2050$.
The monthly payment $m = 90$, and the number of months $n = 2\times12=24$. The total amount paid $A=m\times n=90\times24 = 2160$.
The interest $I=A - P=2160−2050 = 110$.

Problem 9:

The purchase price of the couch is $760$, and there is no down - payment, so $P = 760$.
The monthly payment $m = 60$, and the number of months $n=1.5\times12 = 18$. The total amount paid $A=m\times n=60\times18 = 1080$.
The interest $I=A - P=1080−760 = 320$.

Problem 10:

The purchase price of the computer is $2300$.
The monthly payment $m = 50$, and the number of months $n = 12$. The total amount paid in 12 months is $A_1=m\times n=50\times12 = 600$.
The final payment $F=2300 - 600=1700$.

Answer:

$394$
$347.5$
$110$
$320$
$1700$