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Yesterday, 09:56

Jim wants to purchase a used boat. The price is $8,000 cash or $1,200 down and 18 monthly payments of $429.00. Jim decided to finance the boat.

Calculate:

The amount he will finance.

The total amount of this monthly payments.

The total finance charge.

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Answers (1)
  1. Yesterday, 12:19
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    The total monthly payments would be (18 payments) * ($429/payment) = $7,722. Adding the down payment of $1,200 gives a total amount of $8,922.

    Since the upfront price would have been $8,000, this means that the total finance charge is $8,922 - $8,000 = $922.
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