Question

Dylan bought a new Ford truck for $28,000. Dylan made a down payment of $6,000 and paid $390 monthly for 70 months. What's the total finance charge?

Answer 1

Payments:

-- Down . . . . . $6,000

-- Monthly:

($390/month)x(70 months) = $27,300

Total payments: (6,000 + 27,300) = $33,300

Actual cost of the truck = $28,000

Cost of not paying in full when he got the truck ("finance" charges") =

(33,300 - 28,000) = $5,300