Question

The cost of a boat is $34,000. Arthur finances this by paying > 5000 down and > 998.89 per month for 36 months. Determine a. the amount financed; b. the total installment price; c. the finance charge.

Answer 1

A. The finance amount = $ 29,000

B. The total installment price = $ 6960.04

C. The finance charge = $ 35960.04

Explanation:

Given as

The cost of a boat $34,000

Down payment = $5000

The finance amount = total cost - down payment

= $34,000 - $5000

= $29,000

Now Arthur finance the rest $29,000 as amount of $998.89 for 36 months

So, the Finance amount = $ 998.89 × 36 = $35960.04

so, the total installment price = $ 35960.04 - $29,000

= $ 6960.04

Answer