SOLUTION: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on interest loan. (Round your answers to the nearest cent.)
purchase price: $2,000
Algebra.Com
Question 1172953: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on interest loan. (Round your answers to the nearest cent.)
purchase price: $2,000
down payment: 15%
amount financed: $1700
add on interest: 13.25%
number of payments: 30
finance charge: ____
monthly payment: ______
I was able to get the amount finance but I'm having a hard time getting the finance charge and monthly payment. I tired I=PRT and put in 1700 x .1325 x 12 and got 2703 which was wrong. I just used 12 because of monthly payments..
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
if this is simple interest, the formula is:
i = p * r * t
i is the interest
p is the principal
r is the interest rate per time period
n is the number of time periods.
it looks like the payments are per month, with the number of months = 30.
the interest rate per month would be 13.25% per year / 100 = .1325 per year / 12 = .0110416667 per month.
the formula becomes i = 1700 * .0110416667 * 30 = 563.125.
that's the finance charge.
what is owed is 1700 + that = 2263.125
the monthly charge is that / 30 = 75.4375.
try those numbers.
see how you do.
let me know if that's correct or not.
i'm assuming simple interest formula is what's applied for this problem.
theo
RELATED QUESTIONS
Calculate the amount financed, the finance charge, and the monthly payments (in $) for... (answered by Theo)
off with monthly payments where f is the finance charge on the Loan p is the number of... (answered by Theo)
Jane Windsor financed a $5,900 ski boat with a 12% add-on interest installment loan for... (answered by Theo)
Tamora just made the last of her monthly payments on her loan. She had been making these... (answered by Theo)
The cash price for Roger’s new car was $9,428. The dealer required a 20% down payment.... (answered by rfer)
I need help on how to plug in the information into the formula and the steps in which I... (answered by jim_thompson5910)
Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at... (answered by solver91311)
Find the annual percentage rate using the annual percentage rate table. Here are some... (answered by )
Find the annual percentage rate using the annual percentage rate table. Here are some... (answered by CPhill)