Question

Your friend just purchased a new sports car for 32,000 dollars. He received 6,000 dollars for his trade in and he used that money as a down payment for the new car. He financed the vehicle at 6.76% APR over 48 months with a monthly payment of $619.15. Determine from the given information, the finance charge.

Answer 1

32000-6000 = $26,000 is the amount he financed

619.15 x 48 = 29719.20 is the total amount he paid back

29719.20- 26000 = 3,719.20 is the amount of interest he paid (finance charge)