Question

James wants to buy a gaming computer priced at $3,774, but he is not able to pay the amount in full.

The shop, though, offers purchase plans to help customers afford their products.

The annual interest rates on offer are below. Simple interest will be calculated on each loan.

Payment Period Interest Rate
12 months 14.8%
24 months 11.6%

James chooses to go with the 12-month plan.

How much will the shop earn in interest? (Answers to whole dollars)
$

What is the total amount that James will pay for the computer?
$

If the repayments are split evenly over the year, how much will James pay per month?
$

Answer 1

To get the interest you multiply 1st answer) $3774 by 11.6/100 you’ll get $437.78 rounded of = $438
2nd answer) Total amount James payed is $3774+438= $4212
3rd answer) an year has 12 so to get the amount he paid per month divide $4212 by 12 to get $351