Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447



Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Calculate the amount financed, the finance charge, and the monthly payments for the following add-on interest loans.


(Cash) Down Amount Add-on Number of Finance Monthly
Price payment Financed Interest Payments Charge payment
12. $50,300 25% 12.4% 60

To determine

To calculate: The amount financed, finance charge and monthly payment if purchase price is $50,300, down payment is 25%, add-on interest is 12.4% and number of payment is 60.


Given Information:

The purchase price is $50,300, down payment is 25%, add-on interest is 12.4% and number of payment is 60.

Formula used:

Follow the steps to compute the monthly payment of installment through add-on interest method.

Step 1: The amount financed can be computed by complement method as,

Amount financed=Purchase price(100%Down payment percent)

Step 2: The add-on interest finance charge is computed using I=PRT where P is principal, R is rate and T is time.

Step 3: The total amount of installments payment is computed by adding the finance charge to the amount financed,

Total amount of installment payments=Amount financed+finance charge

Step 4: The regular monthly payments is computed by dividing the total amount of installment payments by the number of months of loan,

Regular monthly payments=Total amount of installment paymentsnumber of months of the loan


Consider that purchase price is $50,300, down payment is 25%, add-on interest is 12.4% and number of payment is 60.

Compute amount financed by substituting purchase price to $50,300 and down payment percent to 25% in the below formula;

Amount financed=Purchase price(100%Down payment percent)=50,300(100%25%)=50,300(75%)=$37,725

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 13 Solutions

Show all chapter solutions add
Sect-13.I P-8RESect-13.I P-9RESect-13.I P-10RESect-13.I P-11RESect-13.I P-12RESect-13.I P-13RESect-13.I P-14RESect-13.I P-15RESect-13.I P-16RESect-13.I P-17RESect-13.I P-18RESect-13.II P-4TIESect-13.II P-5TIESect-13.II P-6TIESect-13.II P-7TIESect-13.II P-8TIESect-13.II P-9TIESect-13.II P-1RESect-13.II P-2RESect-13.II P-3RESect-13.II P-4RESect-13.II P-5RESect-13.II P-6RESect-13.II P-7RESect-13.II P-8RESect-13.II P-9RESect-13.II P-10RESect-13.II P-11RESect-13.II P-12RESect-13.II P-13RESect-13.II P-14RESect-13.II P-15RESect-13.II P-16RESect-13.II P-17RESect-13.II P-18RESect-13.II P-19RESect-13.II P-20RESect-13.II P-21RESect-13.II P-22RESect-13.II P-23RESect-13.II P-24RESect-13.II P-25RESect-13.II P-26RESect-13.II P-27RESect-13.II P-28RESect-13.II P-29RESect-13.II P-30RESect-13.II P-31RESect-13.II P-32RESect-13.II P-33RESect-13.II P-34RESect-13.II P-35RESect-13.II P-36RESect-13.II P-37RESect-13.II P-38RESect-13.II P-39RESect-13.II P-40RESect-13.II P-41RESect-13.II P-42RESect-13.II P-43RESect-13.II P-44RESect-13.II P-45RESect-13.II P-46RESect-13.II P-47RESect-13.II P-48RESect-13.II P-49RESect-13.II P-50RESect-13.II P-51RESect-13.II P-52RESect-13.II P-53RESect-13.II P-54RESect-13.II P-55RECh-13 P-1CRCh-13 P-2CRCh-13 P-3CRCh-13 P-4CRCh-13 P-5CRCh-13 P-6CRCh-13 P-7CRCh-13 P-8CRCh-13 P-9CRCh-13 P-10CRCh-13 P-11CRCh-13 P-12CRCh-13 P-13CRCh-13 P-14CRCh-13 P-1ATCh-13 P-2ATCh-13 P-3ATCh-13 P-4ATCh-13 P-5ATCh-13 P-6ATCh-13 P-7ATCh-13 P-8ATCh-13 P-9ATCh-13 P-10ATCh-13 P-11ATCh-13 P-12ATCh-13 P-13ATCh-13 P-14ATCh-13 P-15AT

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Find the limit. 31. limr9r(r9)4

Single Variable Calculus

Division of Polynomials Find the quotient and remainder. 31. x48x2+2x+7x+5

Precalculus: Mathematics for Calculus (Standalone Book)

Finding a Limit In Exercises 21-24, find the limit limxtanhx

Calculus: Early Transcendental Functions

Write the sum in expanded form. 1. i=15i

Single Variable Calculus: Early Transcendentals, Volume I

Expand each expression in Exercises 122. (x22x+1)2

Finite Mathematics and Applied Calculus (MindTap Course List)

Find the slope of the tangent line to the graph of f(x) = x2 3x + 1 at the point (1, 1). What is an equation o...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

In Exercises 9-16, find the steady state vector for the transition matrix. [45251535]

Finite Mathematics for the Managerial, Life, and Social Sciences

An integral for the solid obtained by rotating the region at the right about the y-axis is:

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

The series solution to y′ = xy is:

Study Guide for Stewart's Multivariable Calculus, 8th

Express 5.037 as a percent.

Mathematics For Machine Technology