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Lloyd and Linda Pearl want to remodel the dining room in their house. The estimated cost for the job is $6,890. They pay 30 percent of the cost up front and finance the rest at 15 percent interest for 48 months.

A- What is the Down Payment?
B- What is the Amount Financed?
C- What is the Monthly Payment?
D- What is the Finance Charge?

Lloyd and Linda Pearl want to remodel the dining room in their house. The estimated-example-1
User Eemmrrkk
by
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2 Answers

4 votes

Final answer:

The down payment for the Pearls' dining room remodel is 30% of the estimated cost, which amounts to $2067. The amount financed is the remaining cost after the down payment, totaling $8223. Exact monthly payment and finance charge calculations require a financial calculator or a specific formula considering the interest rate and financing period.

Step-by-step explanation:

The Pearl's dining room remodeling has several financial components that we need to calculate:

  1. Down Payment: This is 30% of the total cost. To calculate this, we multiply $890 by 0.30.
  2. Amount Financed: This is the remaining 70% after the down payment has been subtracted. We subtract the down payment from the total cost.
  3. Monthly Payment: To calculate this, we would typically use a loan amortization formula or a financial calculator, considering the interest rate and the financing period.
  4. Finance Charge: This is the total interest that will be paid over the life of the loan. It can be found by multiplying the monthly payment by the number of payments (48 in this case) and then subtracting the amount financed.

The answers to these calculations are as follows:

  1. Down Payment: $890 * 30% = $2067
  2. Amount Financed: $890 - $2067 = $8223
  3. Monthly Payment: Without the exact formula or a financial calculator, we cannot provide the exact monthly payment. However, typically, the monthly payment is calculated by dividing the amount financed by the number of months and adjusting for interest rate.
  4. Finance Charge: As with the monthly payment, we cannot provide the exact finance charge without additional calculations or the use of a financial calculator.

Note: The actual monthly payment and finance charges require a more complex calculation that takes into account the compound interest over the life of the loan.

User Knighter
by
6.2k points
4 votes
A. 2067.
6890 time .30 (30 percent) is 2067
B. 4823
inital ammount minus down payment
6890 - 2067 = 4823
C 134.08
Total ammount multiplied by percentage (0.0278)
4823 * .0278 = 134.079 per month
D.1612.81
find total paid and subtract initial ammount to find finance charge
(134.08*48)= 6435.81
6435.81-4824 = 1612.81
User Tania Ang
by
6.3k points
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