A computer costs $1200. You pay $200 in cash and finance the rest for 2 years...

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 =

Expert Solution

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

jeff jeffy answered 2 years ago

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A computer costs $1200. You pay $200 in cash and finance the rest for 2 years...

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