Final answer:
Lauren would pay $14.25 interest the first month.
Step-by-step explanation:
Lauren borrows $2300 to purchase furniture. The annual interest rate is 9% and Lauren would pay $17.25 interest the first month. If Lauren made a down payment of $400, how much interest would Lauren pay the first month?
To find out how much interest Lauren would pay the first month, we can subtract the down payment from the total borrowed amount. $2300 - $400 = $1900. This is the remaining amount on which interest is calculated.
Since the annual interest rate is 9%, we can find the monthly interest rate by dividing it by 12 (months in a year). 9% / 12 = 0.75%.
To calculate the interest for the first month, we can multiply the remaining amount by the monthly interest rate. $1900 * 0.75% = $14.25.
Therefore, Lauren would pay $14.25 interest the first month.