Need help with a math problem!

[Pickler 10+ year member]

Woofers Inc. sells a stereo system for $600 down and monthly payments of $50 for the next 5 years. If the interest rate is 1.75% per month, find:

a) The cost of the stereo.

b) The total amount of interest paid.

Seems simple but I've tried it a lot and cant get it, any help?

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[kurtdirt1 10+ year member]

1.75% on the initial purchase amount? Or 1.75% on the remaining balance after each monthly payment? LOL...

Kurt

 

[kurtdirt1 10+ year member]

Oh, and what's the total price on the system?

Kurt

 

[kurtdirt1 10+ year member]

600X.0175=$10.50? LOL idk

Kurt

 

[Pickler 10+ year member]

Thats all the problem says

 

[Pickler 10+ year member]

600X.0175=$10.50? LOL idk







Kurt

thats simple interest =[

 

[kurtdirt1 10+ year member]

Okay so the cost of the stereo would be 1189.50 and the interest would be 10.50? What did you get?

Kurt

 

[kurtdirt1 10+ year member]

thats simple interest =[

Okay so yeah, the problem is asking for the interest on the remaining balance according to the remaining balance so interest amount would change...not % change but total would change....what class is this for?

 

[kurtdirt1 10+ year member]

What kind of interest is it looking for?

Kurt

 

[kurtdirt1 10+ year member]

Nah screw that, the problem is "simple interest"

Kurt

 

[kurtdirt1 10+ year member]

monthly payments of $50 for the next 5 years. If the interest rate is 1.75% per month, find:

1.75% interest on that $50 per month? right? So therefore simple interest?

Kurt

 

[Tiger Bass 5,000+ posts]

Ooo, ooo, I know this. Gimme a second to write it out.

 

[Pickler 10+ year member]

it uses compound interested, but i cant seem to get it, I use the formula-

P=R (((1-(1+i)^-n)/i)

where P=present value, R=payments, n= number of payments, and i=interest

 

[Tiger Bass 5,000+ posts]

Actually, I'm not 100% on this. I realized the formula I was using might be for a slightly different figure. Flip would be the best person to ask.

Here is what I thought it might have been. This would give you the future value of the stereo.

 

[Pickler 10+ year member]

Actually, I'm not 100% on this. I realized the formula I was using might be for a slightly different figure. Flip would be the best person to ask.
Here is what I thought it might have been. This would give you the future value of the stereo.

I have no idea what that means