Question

Question 5:

1. A university graduate bought a new car. The cash price is $ 36,000; he made a $ 2,000 down payment on it. The bank's loan was for 20 months. Finance charges totaled             $ 10,000. What was the monthly payment?             

2. A steel factory bought a new equipment. The cash price of the equipment is $ 18,000, putting down $ 7,600 and financing the remainder with 20 monthly payments of $ 578 each. Find the APR by table lookup.                              

C. A university graduate bought a new car. The cash price is $19,000; he made a $ 1,400 down payment on it. The bank's loan was for 20 months. Finance charges totaled $ 4,900. What was the monthly payment?

Answer 1

A. Answer :

(i)Cash price of the vehicle = 36,000

(ii)Down payment made =2,000

(iii) Remaining amount to be paid (i-ii)=34,000

(iv) Total Finance cost = 10,000

(v) Total payment to be made (iii+iv) =44,000

vi)  Payment per month to be made = 44,000/20= 2200/-

C. Answer :

(i)Cash price of the vehicle = 19,000

(ii)Down payment made =1,400

(iii) Remaining amount to be paid (i-ii)=17,600

(iv) Total Finance cost = 4,900

(v) Total payment to be made (iii+iv) = 22,500

vi)  Payment per month to be made = 22,500/20= 1125/-