Question

Jim wants to purchase a used car. The price is $12,000 cash or $2,500 down and 24 monthly payments of $450.00. Jim decided to finance the boat.

Answer 1

Answer

The amount that will be financed: $9500

The total amount of the monthly payments: $10,800

The amount of the finance charge: $1,300

Explanation

Remember that the down payment is the initial amount you paid to reduce the amount you finance.

Given that, the amount that Jim will finance will be the price of the bath in cash minus the down payment:

Amount that will be financed = $12,000 - $2,500 = $9500

Next, to find the total amount of the monthly payments, we just need to multiply the monthly payment by the total number of monthly payments:

Total amount of the monthly payments = $450.00*24 = $10,800

Finally, to find the financial amount, we just need to subtract the financed amount from the total amount of the monthly payments:

Amount of the finance charge = $10,800 - $9500 = $1,300

Answer 2

Answer:

The amount that will be financed: 13,300

The total amount of the monthly payments: 10,800

The amount of the finance charge: 1,300

Step-by-step explanation:

How to solve the questions:

We know he has to spend 2,500 down therefore the 2,500 will have to be added. The way to find out how much he spends in the 24 months you multiply 450 and 24 which equals 10,800. Now you add 10,800 and 2,500 which equal 13,300 and that's how you get your answer. :)