Financial Maths, STD2 EQ-Bank 30

A smart TV is for sale at $2850. Liam purchases it using a finance package with a 20% deposit and monthly repayments of $87.63 for 3 years.

What is the interest Liam will pay? (3 marks)

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$$874.68$

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$\text{Deposit}=\dfrac{20}{100}\times 2850=$570$

$\text{Months in 3 years}=3\times 12=36$

$\text{Total repayments}=36\times 87.63=$3154.68$

$\text{Total cost}=570+3154.68=$3724.68$

$\therefore\ \text{Interest paid}=3724.68-2850=$874.68$