Question

Heather purchased a motorcycle for $4800 with 40% down. She will make 24

payments of $135.57 at 12% interest. What is the total paid for the motorcycle
including the downpayment?

Answer 1

$5952

Explanation:

The principal of $4800 will become after 24 months at an interest of 12% APR,

`4800(1 + (2 * 12)/(100)) = 5952` dollars.

Now, the monthly payment is $135.57 for 24 months.

So, the payment by installment is $(135.57 × 24) = $3253.68.

Therefore, the down payment was $(5952 - 3253.68) = $2698.32.

Therefore, the total paid for the motorcycle including the down payment was $5952. (Answer)