Question

To purchase $14.400 worth of machinery for his business, Greg made a down payment of $1400 and took out a business loan for the rest. After 2 years of

paying monthly payments of $576.18, he finally paid off the loan.

Answer 1

below

Explanation:

cost of the machinery = $14,400

he paid a deposit of $1400

then later paid $576.18 for two years

two years = 24 months

= $576.18 *24

=$13,828.32

total amount paid

= initial deposit + amount paid in two years

= $1,400 + $13,828.32

=$15,228.32

so he finally paid $15,228.32

interest = selling price - original cost

= $15,228.32 - $14,400

=$828.32

therefore interest = $828.32