Question

Please provide the steps used to solve this equation.

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 __________________

Answer 1

The price for the boat is $8000 if paid in cash.

Jim chose to finance the purchase.

Money down = $1200, therefore

The amount financed = $8000 - $1200 = $6800

There are 18 monthly payments of $429, therefore

Total monthly payments  = 18*$429 = $7722

Total finance charge = $7722 - $6800 = $922

Answers:

Amount financed  = $6,800

Total monthly payments = $7,711

Total finance charge = $922