Lee purchases a jet ski that sells for $3,800, including tax. It requires a $200 down payment. The
remainder, plus a finance charge, is paid back monthly over the next 3 years. The monthly payment is
$120. What is the finance charge?

[tex]\textsf{Total Amount Financed} = \textsf{Original Price} - \textsf{Down Payment}\\\\\textsf{Total Amount Financed} = \$3800 - \$200 \\\\\textsf{Total Amount Financed}= \$3600[/tex]

The total payments can be calculated by multiplying the monthly payment amount by the number of months in 3 years:

[tex]\textsf{Total Payments} = \$120 \times 36\;\sf months\\\\\textsf{Total Payments} = \$4320[/tex]

To find the finance charge, we can subtract the total payments made from the amount financed:

[tex]\textsf{Finance Charge} = \textsf{Total Payments} - \textsf{Amount Financed}\\\\\textsf{Finance Charge} = \$ 4320 - \$ 3600\\\\\textsf{Finance Charge} = \$ 720[/tex]

Therefore, the finance charge is $720.

Lee purchases a jet ski that sells for $3,800, including tax. It requires a $200 down payment. The remainder, plus a finance charge, is paid back monthly over the next 3 years. The monthly payment is $120. What is the finance charge?

Respuesta :

Otras preguntas

Lee purchases a jet ski that sells for $3,800, including tax. It requires a $200 down payment. The
remainder, plus a finance charge, is paid back monthly over the next 3 years. The monthly payment is
$120. What is the finance charge?