Answer:
the average amount Mrs. Gordon pays in interest each month, we need to determine the total interest paid over the six-month period and divide it by the number of months.
The total interest paid can be found by subtracting the cost of the stove from the total amount paid over six months:
Total interest paid = Total amount paid - Cost of the stove
The total amount paid over six months is calculated by adding the monthly payments:
Total amount paid = $160/month * 6 months
Let's perform the calculations:
Total amount paid = $160/month * 6 months = $960
Total interest paid = Total amount paid - Cost of the stove
= $960 - $850
= $110
Now, to find the average amount Mrs. Gordon pays in interest each month, we divide the total interest paid by the number of months:
The average amount paid in interest each month = Total interest paid / Number of months
= $110 / 6 months
≈ $18.33
Therefore, Mrs. Gordon pays an average of approximately $18.33 in interest each month.