Question

Find the following installment problems, find the amount financed and the finance charge

sale price: $1,500, down payment: $300, Number of monthly payments: 24, Monthly payment: $58, Amount financed: ?; Finance charge: ?

Answer 1

Here, it is mentioned that on the sale price of $1500, a down payment of $300 was made. So, the left $1200 will be the amount financed.

Thus, Amount Financed = $1200

Now, it is also stated that each monthly payment is of $58 and there are 24 such monthly payments. So, total amount of money paid at the end of 24 months = 24*58 = $1392

Therefore, the finance charge will be simply calculated as:

Finance Charge = Total Amount Paid - Amount Financed

Finance Charge = $1392 - $1200

Finance Charge = $192