formula 5 points\ncraig wants to purchase a boat that costs $6,538.\nhe signs an installment agreement…

formula 5 points\ncraig wants to purchase a boat that costs $6,538.\nhe signs an installment agreement requiring a 10% down payment and 36 monthly payments of $500.\nhow much interest will craig end up paying?\nround to the cent.\nanswer

formula 5 points\ncraig wants to purchase a boat that costs $6,538.\nhe signs an installment agreement requiring a 10% down payment and 36 monthly payments of $500.\nhow much interest will craig end up paying?\nround to the cent.\nanswer

Answer

Explanation:

Step1: Calculate the down - payment amount

The cost of the boat is $6538. The down - payment is 10% of the cost. So, the down - payment $= 0.1\times6538=$653.8$.

Step2: Calculate the total of monthly payments

There are 36 monthly payments of $500 each. So, the total of monthly payments $=36\times500 = $18000$.

Step3: Calculate the total amount paid

The total amount paid is the sum of the down - payment and the total of monthly payments. So, the total amount paid $=653.8 + 18000=$18653.8$.

Step4: Calculate the interest paid

The interest paid is the total amount paid minus the cost of the boat. So, the interest paid $=18653.8−6538=$12115.8$.

Answer:

$12115.80$