Neema bought appliances costing ​$3725 at a store charging 5​% ​add-on interest. She made a $ 1000 down payment and agreed to monthly payments over two years. Find the total​ cost, for the appliances plus interest.

We can solve this problem by following these steps:

1. **Find the loan amount:**  
   Neema made a down payment of $1000 on the total cost of $3725, so the remaining amount is the loan.
   \[
   \text{Loan amount} = 3725 - 1000 = 2725
   \]

2. **Calculate the interest:**  
   The store charges 5% add-on interest, meaning the interest is calculated on the original loan amount. 
   \[
   \text{Interest} = 2725 \times 0.05 = 136.25
   \]

3. **Calculate the total amount to be repaid (loan + interest):**  
   \[
   \text{Total repayment amount} = 2725 + 136.25 = 2861.25
   \]

4. **Calculate the total cost of the appliances:**  
   This includes the down payment plus the total repayment amount.
   \[
   \text{Total cost} = 1000 + 2861.25 = 3861.25
   \]

Thus, the total cost for the appliances plus interest is **$3861.25**.

Do you have any questions or want more details? Here are five related questions:

1. How would the total cost change with a 10% add-on interest?
2. What if the down payment was $1500 instead of $1000?
3. How would monthly payments be calculated from the total repayment amount?
4. How does add-on interest differ from compound interest in such cases?
5. What would be the interest paid over one year instead of two years?

**Tip:** Always check if the interest rate applies to the original amount (add-on interest) or is compounded over time.

Neema bought appliances costing ​$3725 at a store charging 5​% ​add-on interest. She made a $1000 down payment and agreed to monthly payments over two years. Find the total​ cost, for the appliances plus interest.

Learn how to calculate the total cost of appliances with a 5% add-on interest rate and a $1000 down payment. This problem breaks down the process of loan calculation, including interest and total repayments. Suitable for students in Grades 9-11.

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