Question

I really need to know how to solve for this question!! I have no idea what to do

Answer 1

Given:

Cost of Truck = $16000

Down payment amount = $3000

EMI = $250

Duration of EMI = 60 Months

Required:

a) Total amount financed

b) Total finance charge paid at the end of 60 months

Step-by-step explanation:

Total cost of Truck = $16000

The total amount taken from other source = Total Amount - Down payment

=$16000-$3000

=$13000

EMI = $ 250

`Total\text{ }amount\text{ }paid\text{ }at\text{ }the\text{ }end\text{ }of\text{ }60\text{ }months=250*60`
`Total\text{ }amount\text{ }paid\text{ }at\text{ }the\text{ }end\text{ }of\text{ }60\text{ }months=15000`

Total amount paid at the end of 60 months = $15000

The total amount financed = Actual price -Down payment

=$16,000- $3000

=$13000

a) Total amount financed =3$18000

The total finance charged = Actual price - amount paid monthly for 60 months.

=$16000-$15000

=$1000

b)The total finance charged =1$20

Answer

Hence the total amount finance is 13000 dollar.

The total finance charged is 1000 dollar.00