Question

Please help with the steps thx

Answer 1

amount financed: 47800

monthly payment: 454.97

FC: 6796.40

558390.76

198390.76

Explanation:

1.)

the amount financed is the cost- amount paid today

61800-14000=47800

effective rate: .027/12=

assuming it's an annuity immediate...

x=payment

`47800=x(1-(1+.00225)^(-(10*12)))/(.00225)\\47800=105.0617517x\\x=454.97`

going to assume that the last part is asking for the interest

to find the interest do financed amount-total paid

454.97*10*12-47800=6796.4

2.)

Find the effective rate

.056/4=.014

assuming annuity immediate

`6000((1+.014)^(15*4)-1)/(.014)=558390.7595`

interest earned:

558390.7595-6000*60=198390.76