If Ahmad made a down payment of $1800 and took out a business loan for the rest.
a. The total amount Ahmed ended up paying for the equipment, including the down payment and monthly payments is $12,968.32.
b. Ahmed paid $2,468.32 in interest on the loan
What is the total amount?
A. Total amount paid in monthly installments
Sum of the down payment =$465.38/month * 12 months/year * 2 years
Sum of the down payment = $11,168.32
Total amount = $11,168.32 + $1800
Total amount = $12,968.32
Therefore the total amount Ahmed ended up paying for the equipment, including the down payment and monthly payments, is $12,968.32.
B. Interest paid:
Principal amount =$12,300 - $1800
Principal amount= $10,500
Interest paid:
Interest paid = $12,968.32 - $10,500
Interest paid = $2,468.32
Therefore Ahmed paid $2,468.32 in interest on the loan.
The complete question is:
To purchase $12,300 worth of restaurant equipment for his business, Ahmed made a down payment of $1800 and took out a loan for the rest. After 2 years of paying monthly of $465.38, he can finally pay off the loan.
(A) What was the total amount Ahmed ended up paying for the equipment( including the down payment and monthly payment)?
(B) how much interest did Ahmed pay on the loan?