Math Question Help - Please Check Answer?

Answers:0   |   LastUpdateAt:2012-11-04 04:31:02  

Question
Carina
Asked at 2012-09-23 15:04:03
2. Phillip wants to buy a new boat for his family . Have two payment options. The first option is to pay a cash payment of $ 7,200. The second option is to finance the boat with an installment loan for three years . The loan requires a 10% pament equal to 36 monthly payments of $ 205. According to this information , what would be the financial burden of the loan ? Show all working . MedlinePlus MedlinePlus My job : MedlinePlus MedlinePlus This is what I've done , but I ` m not sure. MedlinePlus MedlinePlus 2. Method of calculating the amount financed . MedlinePlus MedlinePlus Amount financed = Cash Price
Answer1Clueless.Answered at 2012-11-04 04:30:42
10% of $7,200 = $720, therefore = $7,200 - $720 = $6,480 down payment.

36 x $205 = $7,380 total installments.

So $6,480 down payment + $7,380 installments = $13,860 total cost of boat by installments.

$13,860 total cost - $7,200 asking price = $6,660 (or 92.5%) extra charge for finance.
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