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My family needs a new dining room table because we are all eating on TV trays. We really want to be able to have family meals around a table.  We go to the local furniture store and find exactly what we want for $2500.  The gentleman at the store says he will finance the table for us for $175 a month for 18 months.  If I do this, how much TOTAL will I pay for the dining room table?  Is there a better option? If so, explain. Cost of Dining Table: $2500Financing Terms: $175 per month for 18 monthsTime period for payments = 18 monthsTotal paid = $175/month × 18 months =Total interest = Total payment - Original price

Question

My family needs a new dining room table because we are all eating on TV trays. We really want to be able to have family meals around a table.  We go to the local furniture store and find exactly what we want for 2500. Thegentlemanatthestoresayshewillfinancethetableforusfor2500.  The gentleman at the store says he will finance the table for us for 175 a month for 18 months.  If I do this, how much TOTAL will I pay for the dining room table?  Is there a better option? If so, explain. Cost of Dining Table: 2500FinancingTerms:2500Financing Terms: 175 per month for 18 monthsTime period for payments = 18 monthsTotal paid = $175/month × 18 months =Total interest = Total payment - Original price

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Solution

To calculate the total amount you will pay for the dining room table, you need to multiply the monthly payment by the number of months.

175/month18months=175/month * 18 months = 3150

This means you will pay a total of $3150 for the dining room table if you choose to finance it.

To calculate the total interest, you subtract the original price from the total payment.

Total interest = Total payment - Original price Total interest = 31503150 - 2500 = $650

So, you will be paying an extra $650 for the table if you choose to finance it.

A better option might be to save up for the table and buy it outright, if possible. This way, you avoid paying any interest. If you can't afford to wait, you might consider looking for a cheaper table or a store that offers a lower interest rate.

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