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
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-> 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
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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.
