Question 117076: james wants to buy a camper. he must finance 17000, he will have to make 36 monthly payments of 500. what finance charge will he pay?
Answer by bucky(2189)   (Show Source):
You can put this solution on YOUR website! If James pays $500 per month for 36 months, he will pay a total of $18,000 for the camper because
$500 times 36 equals $18,000.
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Since the cost of the camper is $17,000, that means that the difference between $17,000 and
$18,000 is the finance charge ... the extra money that is charged because James paid for
the camper over a period of 36 months. Therefore, the finance charge is $18,000 - $17,000 = $1,000.
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This is the answer to the problem ... James pays $1,000 in finance charges.
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Hope this helps you to understand the problem.
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