Question

Josh Hayes purchased a bicycle for $350.00 with 30% down. He will make 12 payments of $24.50 each. What is the total amount paid (will include down payment) and finance charge in dollars?

The total paid (including down payment) is $ .

The finance charge in dollars is $

Answer 1

399.00

49.00

Explanation

Answer 2

30% of $350.00 = $105

12*$24.50= $294.00

Josh will pay a total of ($105 + $294) =$399 for the bicycle.

$399.00 - $350.00 = $49.
Since the Bicycle is $350.00 we subtract that amount from his total payments ($399.00) and discover the difference of $49. So, his total finance charge is $49.

We can also break down the finance charge to 12 payments by dividing $49/12 = Josh pays $4.08 each payment (month) if these payments are monthly.

You can also deduct the $4.08 from the $24.50 and it will show his payments are $20.42 without finance charges.