Question

Corinne bought a $4,500 sound system on the installment plan. She made a $600 down payment, and she has to make monthly payments of $118.50 per month for 3 years. How much interest will she pay?

Answer 1

To calculate the interest that Corinne will pay on her sound system purchase, we need to consider the total amount financed and the monthly payments made over the course of three years.

First, let's determine the total amount financed. Corinne made a $600 down payment, so the remaining amount to be financed is $4,500 - $600 = $3,900.

Next, we need to calculate the total monthly payments over three years. Since there are 12 months in a year, the total number of monthly payments will be 3 years * 12 months/year = 36 months.

The monthly payment amount is $118.50, so the total amount paid over 36 months will be $118.50/month * 36 months = $4,266.

To find the interest paid, we subtract the total amount financed from the total amount paid: $4,266 - $3,900 = $366.

Therefore, Corinne will pay a total of $366 in interest on her sound system purchase.

In summary, Corinne will pay a total of $366 in interest on her sound system purchase.

Explanation: