Question

The cost of a boat is $34,000. Arthur finances this by paying > 5000 down and > 998.89 per month for 36 months. Determine a. the amount financed; b. the total installment price; c. the finance charge.

Answer 1

Answer:

A.  The finance amount = $ 29,000

B.  The total installment price = $ 6960.04

C.  The finance charge = $ 35960.04

Step-by-step explanation:

Given as

The cost of a boat $34,000

Down payment = $5000

The finance amount = total cost - down payment

                                 = $34,000 - $5000

                                 = $29,000

Now Arthur finance the rest $29,000 as amount of $998.89 for 36 months

So, the Finance amount = $ 998.89 × 36 = $35960.04

so, the total installment price = $ 35960.04 - $29,000

                                                = $ 6960.04

Answer