Explanation Given Information: The amount of purchase price is $ 5 , 400 , down payment is $ 1 , 500 , monthly payment is $ 427.50 and number of payments is 12 . Formula used: The formula to compute amount financed is, Amount financed = Purchase price − Down payment The formula to compute total amount of installments payment is, Total amount of installment payments = Monthly payment amount × Number of monthly payments The formula to compute finance charge is, Finance charge = Total amount of installment payments − Amount financed The formula to compute total deferred payment price is, Total deferred payment price = Total amount of installment payments + Down payment Calculation: Consider that amount of purchase price is $ 5 , 400 , down payment is $ 1 , 500 , monthly payment is $ 427.50 and number of payments is 12 . Compute amount financed by substituting purchase price equals to $ 5 , 400 and down payment equals to $ 1 , 500 , Amount financed = Purchase price − Down payment = $ 5 , 400 − $ 1 , 500 = $ 3 , 900 Hence, amount financed is $ 3 , 900

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 13.II, Problem 6RE

To determine

To calculate: The amount financed, the finance charge and the total deferred payment price for the installment where purchase price is $5,400, down payment is $1,500, monthly payment is $427.50 and number of payments is 12.

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Chapter 13 Solutions

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The amount financed, the finance charge and the total deferred payment price for the installment where purchase price is $ 5 , 400 , down payment is $ 1 , 500 , monthly payment is $ 427.50 and number of payments is 12 .

Solution Summary: The author calculates the amount financed, the finance charge, and the total deferred payment price for the installment where purchase price is 5,400.

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To calculate: The amount financed, the finance charge and the total deferred payment price for the installment where purchase price is $5,400, down payment is $1,500, monthly payment is $427.50 and number of payments is 12.

Chapter 13 Solutions