Answer:
Month 1:
Calculate Balance (by adding interest to existing balance): 678.34*(1 + 0.217/12) = 690.606648333333 = 690.61
Make payment: 690.61 - 235 = 455.61
Old Balance: 690.61
New Balance: 455.61
--------------------------------------------------------------
Month 2:
Calculate Balance (by adding interest to existing balance): 455.61*(1 + 0.217/12) = 463.8489475 = 463.85
Make payment: 463.85 - 235 = 228.85
Old Balance: 463.85
New Balance: 228.85
--------------------------------------------------------------
Month 3:
Calculate Balance (by adding interest to existing balance): 228.85*(1 + 0.217/12) = 232.988370833333 = 232.99
Make payment: 232.99 - 232.99 = 0
Old Balance: 232.99
New Balance: 0
--------------------------------------------------------------
Payments Made: 235, 235, 232.99
Number of Payments Made: 3
Total Cost: 235 + 235 + 232.99 = 702.99
Total Cost: $702.99
Total Interest: 702.99 - 678.34 = 24.65
Total Interest: $24.65
