neil bought a new boat for $13,750. it required a 15% down payment, then 4 years of monthly payments of $290…

neil bought a new boat for $13,750. it required a 15% down payment, then 4 years of monthly payments of $290 each. find: a) down payment b) total of monthly payments c) total cost d) finance charge

neil bought a new boat for $13,750. it required a 15% down payment, then 4 years of monthly payments of $290 each. find: a) down payment b) total of monthly payments c) total cost d) finance charge

Answer

Explanation:

Step1: Calculate Down Payment

Down payment is (15%) of the boat's price. (13750\times0.15 = 2062.5)

Step2: Calculate Total of Monthly Payments

There are (4) years of monthly payments. Since (1) year has (12) months, (4) years have (4\times12 = 48) months. Each monthly payment is ($290), so total of monthly payments is (290\times48=13920)

Step3: Calculate Total Cost

Total cost is down payment plus total of monthly payments. (2062.5 + 13920=15982.5)

Step4: Calculate Finance Charge

Finance charge is total cost minus the original price of the boat. (15982.5-13750 = 2232.5)

Answer:

a) ($2062.5) b) ($13920) c) ($15982.5) d) ($2232.5)