Question

John Sullivan bought a new Brunswick boat for $17,000. He made a $2,500 down payment on it. The bank's loan was for 60 months. Finance charges totaled $4,900. His monthly payment is:

Answer 1

John Sullivan bought a boat for $17,000.
He made a downpayment of $2,500, thus remaining amount to be paid is:
Amount = $17,000 - $2,500
Amount= $14,500
But, additional charges has added:
Amount w/ add charges = $14,500 + $4900
Amoun w/ add chargers=$ 19,400
He need to pay this amount within 60 months, thus, his monthly payment is shown below:
Monthly Payment=$19, 400/60
Monthly Payment = $323.33