Question

us Econ 3.4.31 you buy a computer directly from the manufacturer for S3037 and agree to repay it in 36 equal installments at 1 52% interest per month on the unpaid b our monthly payment is SRound to two decimal places)

Answer 1

Monthly Payment = rP(1+r)^N/[(1+r)^N-1]

r = 0.0152

N = 36 months

P = 3037

=> Monthly Payment = 3037*( 0.0152)*(1+ 0.0152)³⁶/((1+ 0.0152)³⁶-1) = $110.16

Hence, Monthly Payment = $110.16

Total Amount paid in 36 months = 110.16*36 = $3965.76

Interest paid = Total amount paid - loan amount = 3965.76 - 3037 = $928.76

Hence, Interest Paid = $928.76