Question

Lloyd and Linda pearl want to remodel the dining room in their house. The estimated cost for the job is $6890. They pay 30% of the cost up front and finance the rest at 15% for 48 months. What is the down payment? What is the amount financed? What is the monthly payment?

Answer 1

Answer:

The down payment is $2,067, the amount financed is $4,823, and the monthly payments are $115.55.

Explanation:

Given that Lloyd and Linda Pearl want to remodel the dining room in their house, and the estimated cost for the job is $ 6890, and they pay 30% of the cost up front and finance the rest at 15% for 48 months, to determine what is the down payment, what is the amount financed and what is the monthly payment, the following calculations must be made:

6890 x 0.3 = 2,067

6,890 - 2,067 = 4,823

(4,823 x 1.15) / 48 = 115.55

Therefore, the down payment is $ 2,067, the amount financed is $ 4,823, and the monthly payments are $ 115.55.