Jeff bought a refrigerator for $1300. He made a 10% down payment and financed the rest at 6% for one year. How much interest did he pay?
1300 * 0.1 = 130
1300 - 130 = 1170
1170 * 0.06 = ?
70.2
Right.
Carol bought a new dining table for $1,100.00. She made 20% down payment and paid $250 a month for 6 months. How much did she pay for the table?
To calculate the interest paid on the financed amount, we need to find two things: the amount financed and the interest rate.
First, we need to find the amount financed. Jeff made a 10% down payment, so we can calculate it by subtracting 10% of the total cost from the total cost of the refrigerator:
Down payment = 10% of $1300
= 0.1 * $1300
= $130
Amount financed = Total cost - Down payment
= $1300 - $130
= $1170
Now, we need to find the interest rate. Jeff financed the amount at 6% for one year, so the interest rate is 6%.
To calculate the interest paid, we multiply the amount financed by the interest rate:
Interest paid = Amount financed * Interest rate
= $1170 * 6%
= $1170 * (0.06)
= $70.20
Therefore, Jeff paid an interest of $70.20.