Question

Shelia bought a new computer for 2000 dollars and has agreed to finance it at 12% interest, with 100 dollar payments each month. When she makes her first payment next month, how much will she pay for interest alone?

Answer 1

I will assume the interest rate is 12% per annum, compounded monthly, so the montyly rate is 1%

interest in the first month = 2000(.01) = $20