Question

You bought new furniture with the $3450 that you borrowed from the bank. For 2 years you kept up with the $92.27 monthly payments but then you lost your job. If the bank was charging you a 12.6% interest rate, how much money do you still owe for the furniture

Answer 1

$1670.22

Explanation:

In order to solve this probelm we must first calculate the total amount that you have to pay the bank which would be the amount you borrowed times the interest rate 12.6% or 0.126 (but add the one to add it to the amount borrowed) in decimal ...

$3450 * 1.126 = $3884.70

Now we have to find how much you have already paid by multiplying the amount per month by the amount of months you have paid, since you have been paying for 2 years that means it has been 24 months

92.27 * 24 = $2214.48

Finally we subtract the amount you paid from the total owed to find out how much you still owe

3884.70 - 2214.48 = $1670.22