To purchase $12,900 worth of machinery for her business, Melissa made a down payment of $2100 and took out a business loan for the rest. After years of paying monthly payments of $478.67, she finally paid off the loan.

a) What was the total amount Melissa ended up paying for the machinery (including the down payment and monthly payments) ?

(b) How much interest did Melissa pay on the loan?

Question

Mathematics

Rachel Meza

4 October, 08:20

To purchase $12,900 worth of machinery for her business, Melissa made a down payment of $2100 and took out a business loan for the rest. After years of paying monthly payments of $478.67, she finally paid off the loan.

a) What was the total amount Melissa ended up paying for the machinery (including the down payment and monthly payments) ?

(b) How much interest did Melissa pay on the loan?

+1

Answers (1)

Know the Answer?

Abagail Kelley · Answer 1

a) $13588.08

b) $688.08

Step-by-step explanation:

Melissa had to purchase $12,900 worth of machinery for her business.

She made a down payment of $2100 and after that made monthly payments of $478.67 for the business loan for the rest.

Given that after years of paying monthly payments of $478.67, she finally paid off the loan.

Assume that she took 2 years to repay the loan.

a) Therefore, the total amount Melissa ended up paying for the machinery was $[2100 + (478.67 * 24) ] = $13588.08 (Answer)

b) Therefore, the amount of interest that Melissa pay on the loan is $ (13588.08 - 12900) = $688.08. (Answer)