Question

John bought a new computer. He paid $1000. If he paid $25 for 5 months, and $30 of interest was added to the loan, what is his new total he owes on the computer?

a) 845
b) 905
c) 1155
d) 1000

Answer 1

After John paid $25 for 5 months and had $30 of interest added to his loan, the new total he owes for the computer is $905.

Step-by-step explanation:

John's new total he owes on the computer after paying $25 for 5 months, with $30 of interest added, can be calculated as follows:

Original price: $1000
Payments made: 5 months * $25/month = $125
Total interest: $30

Therefore, the new total owed = Original price - Payments made + Total interest

New total owed = $1000 - $125 + $30 = $905

The answer is b) $905.