Question

James purchased a ski boat costing $12,100 with $1,000 down and loan

payments of $500 per month for 24 months. Find the total installment cost.

Answer 1

Total installment cost is $13,000

Explanation:

Total installment comprises of two components which the down payment made at the beginning of the credit purchase and the total of all monthly repayments.

Down payment=$1000

$500 payment is expected monthly for 24 months which effectively means $12,000($500*24)

Total installment cost=$1,000+$12,000=$13,000

In a nutshell the total installment cost of the ski boat is $13,000