In: Finance
A computer costs $1200. You pay $200 in cash and finance the rest for 2 years at 4% interest compounded monthly. If you make monthly payments, what is the total amount of interest that you’ll end up paying? Round your answer to 2 decimal places. (See page 83 (video 61)) (Answer: $42.08)
does anyone know what numbers to plug into a graphing calculator? or the steps to get this answer?
N= I= PV= PMT= FV= P/Y, C/Y =
As mentioned, I will solve this question using financial calculator.
Loan Amount = 1200 - 200 = 1000
PV = 1000
FV = 0
N = 2*12 = 24
I/Y = 4/12
CPT PMT
PMT = 43.42
Monthly Payment = 43.42
Total Payment paid = 43.42*24 = 1042.20
Loan Amount = 1000
Interest = 1042.20 - 1000 = 42.20 Answer