Please calculate

Question

Jim wants to purchase a used boat. The price is $8000 cash or $1200 down and 18 monthly payments of $429. Calculate the amount he will finance? The total amount of this monthly payments? The total finance charge?

Answer 1

Cash Price = $8000

 

Down Payment = $1200

 

Monthly payment = $429

 

Total Monthly Payment = $429 X 18 months = $7,722

 

Total Amount to be be financed = down payment + total monthly payments

                                              = $1,200 + $7,722

                                              = $8922

 

Total Finance Charge = Total Amount - Cash Price

                                              = $8922 - $8000

                                               = $922