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Sam Lane purchased a swing set for $725 with 15% down. He will make 12 payments of $54.35 each. What is the total amount paid (including the down payment) and the finance charge in dollars?

A) Total paid (including down payment): $725; Finance charge: $0
B) Total paid (including down payment): $911.20; Finance charge: $186.20
C) Total paid (including down payment): $653.20; Finance charge: $71.20
D) Total paid (including down payment): $725; Finance charge: $186.20

User H K
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1 Answer

2 votes

Final answer:

The total amount Sam Lane paid for the swing set, including the down payment, is $760.95, and the finance charge is $35.95. The correct answer is not listed among the provided options.

Step-by-step explanation:

To find out the total amount paid (including the down payment) and the finance charge in dollars for a swing set that Sam Lane purchased, we need to perform a few calculations based on the information provided:The price of the swing set: $725Down payment made: 15% of $72Monthly payments: 12 payments of $54.35 eachFirst, calculate the down payment:Down payment = 15% of $725 = 0.15 × $725 = $108.75Next, calculate the total of the monthly payments:Total of monthly payments = 12 × $54.35 = $652.20Now, determine the total amount paid (including down payment):

Total paid = Down payment + Total of monthly payments = $108.75 + $652.20 = $760.95Lastly, calculate the finance charge:Finance charge = Total paid - Price of the swing set = $760.95 - $725 = $35.95Therefore, the correct answer is not among the provided options. The total amount paid, including the down payment, is $760.95, and the finance charge is $35.95.To find the total amount paid (including the down payment), we need to add the down payment to the sum of the 12 payments. The down payment is 15% of $725, which is $108.75. Therefore, the total amount paid is $108.75 + (12 * $54.35) = $653.20.The finance charge can be calculated by subtracting the total purchase price from the total amount paid. The total purchase price is $725. So, the finance charge is $653.20 - $725 = -$71.20. Since the finance charge is negative, it means that there is no finance charge.

User Poorya Mohammadi
by
7.9k points
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