Answer:
$748.48
Explanation:
Cost of wheelchair = $2,007
Down payment = Cost of wheelchair*20% = $2,007*20% = $401.40
Amount of finance = Cost of wheelchair - Down payment = $2,007 - $401.40 = $1,605.60
Interest rate = 18% * 1/12 = 1.5%per month
Term = 54 month
Monthly payment = Amount of finance*I/[1-(1+I)^-n]
Monthly payment = $1,605.60*1.5%/[1-(1+1.5%)^-54]
Monthly payment = $1,605.60*1.5%/[1 - 0.447541]
Monthly payment = $1,605.60*0.015/0.55246
Monthly payment = $43.59411
Total amount paying for loan over a period = Monthly payment * Term = $43.59411 * 54 = $2354.08
Amount of finance charge = Total amount paying for loan - Amount of loan
Amount of finance charge = $2354.08 - $1,605.60
Amount of finance charge = $748.48
