math, question

what formula did the book use and the set up for it to get this answer for this problem:


Stereo shack sells a stereo system for $600 down and monthly payments of $30 for the next 3 yrs. In the interest rate is 1.25% per month on the unpaid balance, find the cost of the stereo system.


The amount of loan that gets amortized at $30 a month and 1.25% monthly interest is $865.42. Add the down payment to that and you get the original price.

You will need an amortization table such as

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