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Price of the scooter: $1890
Duration of the installment plan: 2 years
Annual interest rate: 1.8%
a. Total Interest:
To find the total interest, we'll calculate the simple interest charged on the price of the scooter over the 2-year period.
Simple Interest = Principal * Rate * Time
Principal = $1890
Rate = 1.8% per annum
Time = 2 years
Total Interest = $1890 * 0.018 * 2
b. Amount to Pay Each Month:
To calculate the monthly installment amount, we'll divide the total amount (price + interest) by the number of months in the installment plan.
Total Amount = Price + Total Interest
Number of Months = 2 years * 12 months per year
Amount to Pay Each Month = Total Amount / Number of Months
Now let's perform the calculations:
a. Total Interest:
Total Interest = $1890 * 0.018 * 2 = $68.04
b. Amount to Pay Each Month:
Total Amount = $1890 + $68.04 = $1958.04
Number of Months = 2 years * 12 months per year = 24 months
Amount to Pay Each Month = $1958.04 / 24 ≈ $81.59
Therefore:
a. The total interest to be paid is approximately $68.04.
b. The monthly installment amount is approximately $81.59 (rounded to the nearest cent).
Duration of the installment plan: 2 years
Annual interest rate: 1.8%
a. Total Interest:
To find the total interest, we'll calculate the simple interest charged on the price of the scooter over the 2-year period.
Simple Interest = Principal * Rate * Time
Principal = $1890
Rate = 1.8% per annum
Time = 2 years
Total Interest = $1890 * 0.018 * 2
b. Amount to Pay Each Month:
To calculate the monthly installment amount, we'll divide the total amount (price + interest) by the number of months in the installment plan.
Total Amount = Price + Total Interest
Number of Months = 2 years * 12 months per year
Amount to Pay Each Month = Total Amount / Number of Months
Now let's perform the calculations:
a. Total Interest:
Total Interest = $1890 * 0.018 * 2 = $68.04
b. Amount to Pay Each Month:
Total Amount = $1890 + $68.04 = $1958.04
Number of Months = 2 years * 12 months per year = 24 months
Amount to Pay Each Month = $1958.04 / 24 ≈ $81.59
Therefore:
a. The total interest to be paid is approximately $68.04.
b. The monthly installment amount is approximately $81.59 (rounded to the nearest cent).
Date Posted:
1 year ago