(i) Monthly installment is $21.53 approximately.
(ii) Total amount man has to pay is $3716.8
(iii) Extra money he had to pay for buying the computer on hire is $516.8
Given,
Initial price of the computer(p) = $3200
Down payment = $480
Time period = 2 yrs
rate percent = 9.5%
(i) Monthly installment = ?
monthly installment =(capital amount × interest rate)/time in months
down payment to be paid = 3200 ₋ 480
= 2720
therefore, monthly payment = 2720 × 9.5 × 1/ 12
= $21.53
(ii) Total amount man has to pay = ?
= down payment ₊ remaining amount ₊ (remaining amount × t × r)
= 480 ₊ 2720 ₊ 2720 × 9.5 × 2
= $3716.8
(iii) If he buys the computer on hire then how much more he has to pay = ?
= total amount ₋ initial cost
= 3716.8 ₋ 3200
= $516.8
Hence the man has to pay $21.23 as a monthly installment, $3716.8 as a total cost of the computer system and $516.8 as an extra amount if he buys it on hire.
Learn more about "Interest rate problems" here-
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