Question

Mrs. Johnson bought a dishwasher at a special sale. The dishwasher regularly sold for $1080. No down payment was required. Mrs. Johnson has to pay $260 for the next six months. What is the average amount she pays in interest each month?

Answer 1

$80.

Explanation:

To calculate the average amount Mrs. Johnson pays in interest each month, we need to determine the total amount of interest paid over the six-month period.

The total cost of the dishwasher is the regular price of $1080. Since there was no down payment, this is the total amount Mrs. Johnson will pay.

To find the total interest paid, we subtract the regular price from the total amount paid over the six-month period. Mrs. Johnson paid $260 per month for six months, which is a total of $260 * 6 = $1560.

To find the interest, we subtract the regular price from the total amount paid: $1560 - $1080 = $480.

Now, to find the average amount Mrs. Johnson pays in interest each month, we divide the total interest by the number of months: $480 / 6 = $80.

Therefore, the average amount Mrs. Johnson pays in interest each month is $80.