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Winnie bought a Ford Explorer for $23,000. Winnie made a down payment of $6,000 and paid $305 monthly for 60 months. What is the total finance charge that Winnie paid at the end of 60 months?

User TonyW
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1 Answer

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Final answer:

The total finance charge Winnie paid after making a down payment of $6,000 on a $23,000 Ford Explorer and paying $305 monthly for 60 months is $1,300.

Step-by-step explanation:

Winnie bought a Ford Explorer for $23,000 and made a down payment of $6,000, leaving a balance of $17,000 to be financed. She paid $305 monthly for 60 months. To find the total finance charge, we first calculate the total amount paid through monthly installments and then subtract the amount financed.

Total paid via installments = $305 × 60 months = $18,300

Amount financed = Original price - Down payment = $23,000 - $6,000 = $17,000

Total finance charge = Total paid via installments - Amount financed = $18,300 - $17,000 = $1,300

Therefore, the total finance charge that Winnie paid at the end of 60 months is $1,300.

User CLFlaVA
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