BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

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

Bob Johnson found a car he wanted to buy at Autorama Auto Sales. He had the option of paying $12,500 in cash or financing the car with a 4-year installment loan. The loan required a 15% down payment and equal monthly payments of $309.90 for 48 months.

a. What is the finance charge on the loan?

b. What is the total deferred payment price of Bob’s car?

(a)

To determine

To calculate: The finance charge on the loan if purchase price of Bob Johnson’s car is $12,500, down payment percent is 15%, monthly payment is $309.90 and number of payments is 48.

Explanation

Given Information:

The purchase price of Bob Johnson’s car is $12,500, down payment percent is 15%, monthly payment is $309.90 and number of payments is 48.

Formula used:

The formula for amount financed is,

Amount financed=Purchase priceDown payment

The formula for the down payment,

Down payment=Purchase Price×Down Payment Percent

The formula for total amount of installments payment is,

Total amount of installment payments=Monthly payment amount×Number of monthly payments

The formula for finance charge is,

Finance charge=Total amount of installment paymentsAmount financed

Calculation:

Consider that purchase price of Bob Johnson’s car is $12,500, down payment percent is 15%, monthly payment is $309.90 and number of payments is 48.

Compute down payment by substituting purchase price to $12,500 and down payment percent is 0.15,

Down payment=Purchase Price×Down Payment Percent=$12,500 × 0.15=$1,875

Hence, down payment is $1,875

(b)

To determine

To calculate: The total deferred payment price for the installment if Bob Johnson’s total amount of installment payment is $14,875.20 and down payment is $1,875.

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

Domain Find the domain of the function. 56. f(x)=13x6

Precalculus: Mathematics for Calculus (Standalone Book)

Explain why the formula for sample variance is different from the formula for population variance.

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Simplify the expressions in Exercises 97106. x1/2y2x1/2y

Finite Mathematics and Applied Calculus (MindTap Course List)

Find the derivatives of the functions in Problems 1-34. 10.

Mathematical Applications for the Management, Life, and Social Sciences

In Exercises 19 and 20, determine whether the lines AB and CD are parallel. 19. A(1, 2), B(3, 10) and C(1, 5), ...

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

Through (12,23), perpendicular to the line 4x 8y = 1

Single Variable Calculus: Early Transcendentals, Volume I

Find the value of the sum. 33. i=1n(i+1)(i+2)

Single Variable Calculus: Early Transcendentals

The first point determined by Euler’s method for , y(11) = 2 with step size 0.5 is: (11.0, 3.5) (11.5, 3.5) (11...

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

Explain why control of extraneous variables is a critical component of an experiment.

Research Methods for the Behavioral Sciences (MindTap Course List)