Question

Please help with the steps thx

Answer 1

Answer:

amount financed: 47800

monthly payment: 454.97

FC: 6796.40

558390.76

198390.76

Step-by-step explanation:

1.)

the amount financed is the cost- amount paid today

61800-14000=47800

effective rate: .027/12=

assuming it's an annuity immediate...

x=payment

$47800=x\frac{1-(1+.00225)^{-(10*12)}}{.00225}\\47800=105.0617517x\\x=454.97$

going to assume that the last part is asking for the interest

to find the interest do financed amount-total paid

454.97*10*12-47800=6796.4

2.)

Find the effective rate

.056/4=.014

assuming annuity immediate

$6000\frac{(1+.014)^{15*4}-1}{.014}=558390.7595$

interest earned:

558390.7595-6000*60=198390.76