Explanation Given Information: The purchase price is $ 12 , 000 , down payment is 10 % , monthly payment is $ 375.00 and number of payments are 36 . Formula used: Amount financed = Purchase price - Down payment Down payment = Purchase Price × Down payment percent Total amount of installment payments = Monthly payment amount × Number of monthly payments Finance charge = Total amount of installment payments − Amount financed Total deferred payment price = Total amount of installment payments + Down payment Calculation: As, Down payment = Purchase Price × Down payment percent Down payment = $12,000 × 10% = $12,000 × 10 100 = $1,200 As, Amount financed = Purchase price - Down payment Amount financed = $ 12 , 000 - $1,200 = $10,800 Hence, the amount financed is $ 10 , 800

8th Edition

ISBN: 9781305888715

Author: Brechner

Publisher: CENGAGE LEARNING - CONSIGNMENT

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Chapter 13.II, Problem 3RE

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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 $12,000, down payment is 10%, monthly payment is $375.00 and number of payments are 36.

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Chapter 13.II, Problem 2RE

Chapter 13.II, Problem 4RE

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The amount financed, the finance charge and the total deferred payment price for the installment, where purchase price is $ 12 , 000 , down payment is 10 % , monthly payment is $ 375.00 and number of payments are 36 .

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

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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 $12,000, down payment is 10%, monthly payment is $375.00 and number of payments are 36.

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Chapter 13 Solutions