zane bought a $1,200 gaming system on an installment plan. he made a $230 down payment, and he must make…

zane bought a $1,200 gaming system on an installment plan. he made a $230 down payment, and he must make monthly payments of $63.69 for the next three years. how much interest will he pay? round to the cent

zane bought a $1,200 gaming system on an installment plan. he made a $230 down payment, and he must make monthly payments of $63.69 for the next three years. how much interest will he pay? round to the cent

Answer

Explanation:

Step1: Calculate total monthly payments

There are 3 years and 12 months in a year, so the number of months $n = 3\times12=36$. The monthly - payment is $m = 63.69$. The total of monthly payments is $M=n\times m=36\times63.69 = 2292.84$.

Step2: Calculate total amount paid

The down - payment is $d = 230$. The total amount paid $A$ is the sum of the down - payment and the total of monthly payments, so $A=d + M=230+2292.84=2522.84$.

Step3: Calculate interest paid

The cost of the gaming system is $C = 1200$. The interest paid $I$ is the total amount paid minus the cost of the item, so $I=A - C=2522.84−1200 = 1322.84$.

Answer:

$1322.84$