Question

Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will make 12 payments of $24.38 each. What is the total amount paid (including down payment) and finance charge in dollars?

The total paid (including down payment) is $

The finance charge in dollars is $

Answer 1

The total paid (including down payment) is
650×0.75+24.38×12=780.06
The finance charge in dollars is
780.06−650=130.06

Answer 2

The total amount paid = $780.06.

The finance charge = $130.06

Explanation:

We have been given that Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will also make 12 payments of $24.38 each.

First of all let us find the amount of down payment paid by Curtis Hindle by calculating 75% of $650.

`\text{Amount of down payment}=(75)/(100)* \$650`

`\text{Amount of down payment}=0.75* \$650`

`\text{Amount of down payment}=\$487.5`

Now let us find the amount paid for 12 payments by multiplying 12 by $24.38.

`\text{Amount of 12 monthly payments}=12* \$24.38`

`\text{Amount of 12 monthly payments}=\$292.56`

To find the total amount paid by Curtis we will add the amounts paid for down payment and 12 monthly payments.

`\text{Total amount paid by Curtis Hindle}=\$487.5+\$292.56`

`\text{Total amount paid by Curtis Hindle}=\$780.06`

Therefore, the total amount paid by Curtis Hindle is $780.06.

To find the amount of finance charges we will subtract the cost of bike from total amount paid.

`\text{The amount of finance charge}=\$780.06-\$650`

`\text{The amount of finance charge}=\$130.06`

Therefore, the finance charges is $130.06.