Question

A homeowner installed and kitchen cabinets and countertops for $4,500.00. He paid 15% down and financed the balance with 24-month fixed installment loan with an APR of 7.0%. Determine the total final charge and monthly payment for the loan.

Answer 1

The total final charge for the loan is $4,500.00 and the monthly payment is approximately $162.36.

Step-by-step explanation:

To determine the total final charge and monthly payment for the loan, we need to calculate the down payment, the loan amount, and the monthly payment. The homeowner paid 15% down, which is 15% of $4,500.00 = $675.00. The loan amount is the remaining $4,500.00 - $675.00 = $3,825.00. The total final charge is the sum of the down payment and the loan amount, which is $675.00 + $3,825.00 = $4,500.00.

Next, to calculate the monthly payment, we need to use the formula for a fixed installment loan.

The formula is: Monthly Payment =
`Loan Amount * (APR/12) * (1 + (APR/12))^n / ((1 + (APR/12))^n - 1)` , where APR is the annual percentage rate and n is the number of months.

Plugging in the values: Monthly Payment = $3,825.00 * (0.07/12) * (1 + (0.07/12))^24 / ((1 + (0.07/12))^24 - 1), we can calculate the monthly payment to be approximately $162.36.

Answer 2

4,500.00 rupees

Step-by-step explanation: