Answer to Question #132203 in Financial Math for Lehlohonolo Majoang

Question

George would like to buy a hi-fi consting R3999. She pays a deposit of 15% and 24 payments of R170 if no insurance premium is added. Calculate the amount of interest in total she would be paying

Answer 1

$A=P(1+in)$

A=$24\times 170= 4080$

$4080=P(1+(0.15\times2))$

$P=\frac {4080}{1.30}$

$P= R3138.46$

Interest= $R3999- R3138.46 = R860.54$

$Interest= R860.54.$