Question

(Cash Versus Financing MC)

A customer at an electronics store opened a store credit card to purchase a computer for $1,800. The store put the entire purchase on the credit card with an APR of 17.99%. The customer pays $125 per month until the balance is paid off. Determine the total amount of interest paid.

A spreadsheet was used to calculate the correct answer.Your answer may vary slightly depending on the technology used.

$188.09

$295.01

$243.11

$182.45

Answer 1

295.01

Answer 2

thx

Answer 3

The correct answer is $243.11.

Here is the breakdown of the monthly payments:
Month 1: $125 - $25.46 (interest) = $99.54 towards the principal
Month 2: $124.54 - $22.40 (interest) = $102.14 towards the principal
Month 3: $122.23 - $20.84 (interest) = $101.39 towards the principal
Month 4: $120.02 - $18.76 (interest) = $101.26 towards the principal
Month 5: $118.11 - $16.93 (interest) = $101.18 towards the principal
Month 6: $116.38 - $15.24 (interest) = $101.14 towards the principal
Month 7: $114.82 - $13.66 (interest) = $101.16 towards the principal
Month 8: $113.46 - $12.19 (interest) = $101.27 towards the principal
Month 9: $112.19 - $10.80 (interest) = $101.39 towards the principal
Month 10: $111.00 - $9.49 (interest) = $101.51 towards the principal
Month 11: $109.89 - $8.25 (interest) = $101.64 towards the principal
Month 12: $108.85 - $7.07 (interest) = $101.78 towards the principal

Total interest paid = $125 x 12 - $1800 = $243.11.

Answer 4

hmm my ai was be trippin

Answer 5

aratox is right.

Answer 6

i would trust his answer

Answer 7

my b math is not my strong suit

Answer 8

thx anyway