Answer and Step-by-step explanation:
a. To calculate the total amount Amy ended up paying for the machinery, we need to add the down payment and the total amount of monthly payments she made.
The down payment Amy made was $1900, and the monthly payments were $358.99. Amy made these payments for a certain number of years, but the question does not provide that information.
To find the total amount of monthly payments, we can multiply the monthly payment by the number of months she made payments. However, since we don't know the number of months, we'll leave it as a variable, let's call it "n".
So the total amount Amy paid for the machinery, including the down payment and monthly payments, is:
Total amount = Down payment + Monthly payment * Number of months
Total amount = $1900 + $358.99 * n
Since the question mentions that Amy finally paid off the loan, we can assume that the total number of monthly payments is equal to the number of months it took for her to pay off the loan.
b. To calculate the amount of interest Amy paid on the loan, we need to subtract the original amount of the loan from the total amount she paid for the machinery.
The original amount of the loan is the total cost of the machinery minus the down payment.
Original loan amount = Total cost of machinery - Down payment
Original loan amount = $13,700 - $1900
Once we have the original loan amount, we can subtract it from the total amount Amy paid to find the interest she paid.
Interest paid = Total amount - Original loan amount
Interest paid = ($1900 + $358.99 * n) - ($13,700 - $1900)
Simplifying the equation, we get:
Interest paid = $358.99 * n - $11,800
Please note that without the information about the number of months Amy made payments, we cannot determine the specific values for the total amount and interest paid. However, we can use the equations provided to calculate the values once the number of months is known.