Question

Amount Financed (m) = $1,400
Number of Payments per year (y) = 12
Number of Payments (n) = 24
Total Interest (c) = $200.50
Interest = ____%?

Answer 1

You MUST show YOUR work.

Answer 2

If m is the amount financed and P is the periodic payment, \(m = P\cdot\dfrac{1 - v^{n}}{i}\). This is the standard formula for periodic payment over time for level interest.

You are given m = 1400
You are given n = 24
You are ALMOST given P. You can figure it out.
P = (1400 + 200.50)/24 = 1600.50/24 = 66.69

You're almost done. There are two things yet to do.