Question

Jim wants to purchase a used boat. The price is $8,000 cash or $1,200 down and 18 monthly payments of $429.00. Jim decided to finance the boat. Calculate the amount he will finance, the total amount of this monthly payments and the total finance charge.

show your work

Answer 1

The price for the boat is $8000 if paid in cash.

Jim chose to finance the purchase.
Money down = $1200, therefore
The amount financed = $8000 - $1200 = $6800

There are 18 monthly payments of $429, therefore
Total monthly payments = 18*$429 = $7722

Total finance charge = $7722 - $6800 = $922

Answers:
Amount financed = $6,800
Total monthly payments = $7,711
Total finance charge = $922