Question

Bryan bought a $1,999 electric bike on the installment plan. He made a 15% down payment, and he has to make monthly payments of $75.25 for the next two years. How much interest will he pay?

down payment + total manthly = total payments

Answer 1

Bryan's down payment for the electric bike is $299.85, and the total of his monthly payments over two years is $1,806. The total amount he will pay is $2,105.85, and the interest he will pay amounts to $106.85.

Step-by-step explanation:

First, to calculate the down payment, we take 15% of $1,999, which equals $299.85. Next, we calculate the total monthly payments by multiplying $75.25 (the monthly installment) by 24 months (two years), which equals $1,806.

The combined total payments are then the sum of the down payment and the total monthly payments, being

$299.85 + $1,806 = $2,105.85.

To figure out how much interest Bryan will pay, we subtract the original price of the bike from the total payments he will make, resulting in $2,105.85 - $1,999 = $106.85.

Therefore, Bryan will pay $106.85 in interest over the course of two years while paying off his electric bike on the installment plan.