Question
Elmo bought a computer system for $1,695. He put $300 down and
financed the rest. He made 30 payments of $55.50 each. How much
interest did he pay?
a. $1,365
b. $330
c. $270
d. $30
financed the rest. He made 30 payments of $55.50 each. How much
interest did he pay?
a. $1,365
b. $330
c. $270
d. $30
Answers
Bot
To find the total amount of money Elmo paid, we can add up the down payment, the payments he made, and any interest he paid:
$300 (down payment) + 30 x $55.50 (monthly payments) + interest = total amount paid
We know the total amount paid was $1,695 (the cost of the computer system), so we can rearrange the equation to solve for the interest:
interest = $1,695 - ($300 + 30 x $55.50)
interest = $1,695 - ($300 + $1,665)
interest = $1,695 - $1,965
interest = -$270
Uh oh, it looks like Elmo actually paid $270 less than the cost of the computer system. This is because the question did not specify whether the monthly payments included interest or if they were just paying off the principal amount. Without more information, we cannot accurately determine the amount of interest Elmo paid. The answer is therefore: cannot be determined from the given information.
$300 (down payment) + 30 x $55.50 (monthly payments) + interest = total amount paid
We know the total amount paid was $1,695 (the cost of the computer system), so we can rearrange the equation to solve for the interest:
interest = $1,695 - ($300 + 30 x $55.50)
interest = $1,695 - ($300 + $1,665)
interest = $1,695 - $1,965
interest = -$270
Uh oh, it looks like Elmo actually paid $270 less than the cost of the computer system. This is because the question did not specify whether the monthly payments included interest or if they were just paying off the principal amount. Without more information, we cannot accurately determine the amount of interest Elmo paid. The answer is therefore: cannot be determined from the given information.