Question

Susie bought a $2,100 computer on an installment plan

with simple interest She made a $50 down payment,
and she has to make monthly payments of $90 for the
next two years. How much interest will she pay?(2

Answer 1

$110 interest paid

Explanation:

Let's see how much ultimately Susie has to pay.

90 per month for 2 years (2*12 = 24 months) = 90 * 24 = $2160

Also, she made a 50 dollar downpayment, so total paid is:

2160 + 50 = 2210 dollars

Thus, the cost is 2100, but ultimately she has to pay 2210 for using installment plan.

How much interest is that?

The exxtra amount is the interest, so

2210 - 2100 = $110 interest paid