Question

Lloyd and Linda Pearl want to remodel the dining room in their house. The estimated cost for the job is $6,890. They pay 30 percent of the cost up front and finance the rest at 15 percent interest for 48 months.
A- What is the Down Payment?
B- What is the Amount Financed?
C- What is the Monthly Payment?
D- What is the Finance Charge?

Answer 1

A. 2067.
6890 time .30 (30 percent) is 2067
B. 4823
inital ammount minus down payment
6890 - 2067 = 4823
C 134.08
Total ammount multiplied by percentage (0.0278)
4823 * .0278 = 134.079  per month
D.1612.81
find total paid and subtract initial ammount to find finance charge
(134.08*48)= 6435.81
6435.81-4824 = 1612.81