Question

From this partial advertisement: Used car $93.38 per month for 60 months Cash price $4,200 Down payment $50 a. Calculate the amount financed. b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.) c. Calculate the deferred payment price. (Do not round intermediate calculations. Round your answer to the nearest cent.)

Answer 1

Answer: The answer is as follows:

Explanation:

Given that,

Used car $93.38 per month for 60 months

Cash price = $4,200

Down payment = $50

(a) Amount Financed = Total Value (Cash Price) - Down Payment

                                   =  4200 - 50

                                   = $4150

(b) Finance Charge = Total payments - Amount Financed

                                = 93.38 × 60 - 4150

                                = 5602.8 - 4150

                                = $1452.8

(c) Deferred payment price = Down Payment + Total payments

                                             = 50 + 5602.8

                                             = $5652.8