You have purchased a home entertainment system for $6000. You have
agreed to pay off the system in 36 monthly payments of $194.42. What will
be the total sum of your payments? What will be the total amount of interest
that you will have paid? What is the percent of interest based on the price of
the entertainment system? Explain.

Question

You have purchased a home entertainment system for $6000. You have
agreed to pay off the system in 36 monthly payments of $194.42. What will
be the total sum of your payments? What will be the total amount of interest
that you will have paid? What is the percent of interest based on the price of
the entertainment system? Explain.

anonymous · Answer

A = P(1+r)t is the formula I'm supposed to use but my answer turned out funny.

rebeccaxhawaii · Answer

still there?

anonymous · Answer

yes I'm still struggling to solve this. I don't know what I'm doing wrong. I'm starting to think I'm using the wrong formula.

skullpatrol · Answer

Try to not rely so much on the formula, instead try to understand what the question is asking for.

skullpatrol · Answer

What will be the TOTAL sum of your payments?

skullpatrol · Answer

What does 36 monthly payments of $194.42 add up to?

skullpatrol · Answer

The total amount of interest that you will have paid will be that^ amount subtract away $6,000 because that is the original cash purchase price.