Final answer:
Laci will pay a total of $1,038 in interest for the jet ski over the course of her 2-year installment plan, after making monthly payments of $268.25 and a down payment of $540 on the original price of $5,940.
Step-by-step explanation:
Laci bought a jet ski on an installment plan for $5,940 and made a down payment of $540. She will make monthly payments of $268.25 for 2 years to pay off the remaining balance. To calculate the total interest paid, we first need to find the total amount paid over the 24 months:
Total payments = monthly payment × number of months
Total payments = $268.25 × 24 = $6,438
Now, we add the down payment to this amount to get the total amount paid for the jet ski:
Total amount paid = down payment + total payments
Total amount paid = $540 + $6,438 = $6,978
The total interest paid is the total amount paid minus the original price of the jet ski:
Total interest = total amount paid - original price
Total interest = $6,978 - $5,940 = $1,038.
Therefore, Laci will pay $1,038 in total interest on her installment plan for the jet ski.