<h2>Answer</h2>
The amount that will be financed: $9500
The total amount of the monthly payments: $10,800
The amount of the finance charge: $1,300
<h2>Explanation</h2>
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
