SOLUTION: A dishwasher costs $975. You pay $150 down and finance the rest at 10.5% APR for 24 months. How much more did you pay for the dishwasher by financing it instead of paying cash?

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Question 133148This question is from textbook Fundamentals of Algebric Modeling
: A dishwasher costs $975. You pay $150 down and finance the rest at 10.5% APR for 24 months. How much more did you pay for the dishwasher by financing it instead of paying cash? This question is from textbook Fundamentals of Algebric Modeling

Answer by vleith(2983) About Me  (Show Source):
You can put this solution on YOUR website!
Using simple interest.
Given: 10.5% APR over 2 years.
Financed amount = 975 - 150 = 825.
Using simple interest of 10.5 on a principle of 825, yields $86.625 per year.
For two years, that's $173.25.