SOLUTION: John bought a new computer for $1,650. He paid a $160 down payment and financed the rest for 1 year at an interest rate of 7%. Find the total interest paid on the given amortized l

Question 743383: John bought a new computer for $1,650. He paid a $160 down payment and financed the rest for 1 year at an interest rate of 7%. Find the total interest paid on the given amortized loan assuming that John makes monthly payments. Do not round until the final answer. Then, round to the nearest cent.
Answer by Menjax(62) (Show Source): You can put this solution on YOUR website!
Let c = computer's cost = 1650
Interest = Percentage x Amount owed / number of payments
So I = 7/100 x 1490 / 12
7/100 is the percentage
1490 is the amount owed which is the cost minus the down payment
and because he pays once a month for a year he is making 12 payments
so I = 10430 / 1200
Now rounded to nearest cent
so it's 8.69$

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