Question

Find the amount financed and the finance charge in dollars for the following problem. Choose the correct answers.
Josh Hayes purchased a bicycle for $350.00 with 30% down. He will make 12 payments of $24.50 each. What is the total amount paid (will include down payment) and finance charge in dollars?

Answer 1

$350 * 30/100 = $ 105 which is down payment.

$350 - $105 = $245 which is left.

But he will pay $24.50 * 12 = $294 instead.

$294 - $245 = $49

He will pay $49 more.

He paid $105 as down payment and will pay $294 more with 12 months.

Total will be $105 + $294 = $399