Question

Your purchase costs $4,900.25, including tax. You sign an installment loan to pay $1,200 as a down payment. The

remainder including the finance charge will be paid in 40 monthly installments of $102.58. What is the total
amount repaid?

Answer 1

Answer: $5,303.20

Explanation:

The total purchase cost including tax is $4,900.25, and you made a down payment of $1,200, so the amount financed is:

$4,900.25 - $1,200 = $3,700.25

You will make 40 monthly payments of $102.58, so the total amount repaid will be:

40 x $102.58 = $4,103.20

This includes the amount financed plus the finance charge. Adding the down payment, the total amount paid is:

$1,200 + $4,103.20 = $5,303.20

Therefore, the total amount repaid is $5,303.20.