The cost of the stereo system


Problem:

An auto stereo dealer sells a stereo system for $600.00 down and monthly payments of $30.00 for the next 3 years. If the interest rate is 1.25% per month on the unpaid balance, find:

A.) The cost of the stereo system;

B.) The total amount of interest paid.

Please show formula used. And the list of steps used to find the solution.

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Finance Basics: The cost of the stereo system
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