Answer:
Henry's monthly payment is $457.5
Henry pays up for the boat at the end overall $35,960
Explanation:
* Lets explain how to solve the problem
- Henry buys a large boat with full amount of $32,000
- He cannot pay the full amount at once
- He puts a down payment of $14,000
- He receives a loan for the rest of the payment
∵ The rest of payment = 32,000 - 14,000 = $18,000
- The loan has an interest rate of 5.5%
∴ The rate of interest = 5.5/100 = 0.055
- It is to be paid out over 4 years
∵ The amount of interest = P × r × t , where
# P is the principle amount
# r is the rate
# t is the time
∵ P = 18, 000 , r = 0.055 , t = 4
∴ The amount of interest = 18,000 × 0.055 × 4 = $3960
- The total remaining amount is the sum of the rest of payment and
the amount of interest
∵ The rest of payment is $18,000
∵ The interest amount = $3,960
∴ The total remaining amount = 18,000 + 3,960 = $21960
- The number of monthly payments = 12 × t
∵ t = 4
∴ The number of monthly payment = 12 × 4 = 48 months
- The monthly payment = the total remaining ÷ the number of
monthly payment
∵ The total remaining is 21960
∵ The number of monthly payment = 48
∴ The monthly payment = 21960 ÷ 48 = $457.5
* Henry's monthly payment is $457.5
- The total paying for the boat is the sum of the payment down and
the remaining total payment
∵ The payment down is $14,000
∵ The remaining total payment is 21,960
∴ The total payment for the boat = 14,000 + 21,960 = $35,960
* Henry pays up for the boat at the end overall $35,960