Wallace and Sarah purchased furniture for their new home. They had two payment options. The first option is to pay a cash payment of $4200. The second option is to finance the furniture with a two year installment loan. The loan requires 12% down payment and 24 equal monthly payments of $195. According to this information what would be the finace charge on the loan.

asked by Terry

13 years ago

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1 answer

4200 * 0.12 = 504 down payment

4200 - 504 = 3696

195 * 24 = 4680

4680 - 3696 = 984 finance charge

answered by Ms. Sue

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Question

Wallace and Sarah purchased furniture for their new home. They had two payment options. The first option is to pay a cash payment of $4200. The second option is to finance the furniture with a two year installment loan. The loan requires 12% down payment and 24 equal monthly payments of $195. According to this information what would be the finace charge on the loan.

1 answer

4200 * 0.12 = 504 down payment

4200 - 504 = 3696

195 * 24 = 4680

4680 - 3696 = 984 finance charge

Ms. Sue · Answer

4200 * 0.12 = 504 down payment 4200 - 504 = 3696 195 * 24 = 4680 4680 - 3696 = 984 finance charge