Sequence and Series - Simple Interest

A photographer buys camera equipment costing \(\$18\,750\). She pays \(\$3500\) immediately and finances the remaining amount through a loan charging \(4.2\%\) simple interest per annum.

The loan is repaid over \(30\) months.

1. Find the amount of interest charged over the entire loan period.

   [2]

2. The lender states that the usual monthly repayment is \(\$561.71\). Explain why the final repayment should not also be \(\$561.71\), and calculate the correct final repayment.

   [3]