Question

we have the following components of an automobile loan: purchase price (includes taxes and fees): $10,341.77; down - payment: $2700; payments: $285.30 for 38 months. part 1 of 3 find the amount financed. the amount financed is $7641.77. part 2 of 3 find the total installment price. the total installment price is $13541.4. alternate answer: $13,541.40 part 3 of 3 find the finance charge. the finance charge is $

Explanation:

Step1: Recall formula for finance charge

Finance charge = Total installment price - Purchase price

Step2: Identify values

Total installment price = $13541.4$ (from part 2), Purchase price = $10341.77$

Step3: Calculate finance charge

$13541.4 - 10341.77=3199.63$

Answer:

$3199.63$