Ask Question
1 April, 21:41

David Nason purchased a recreational vehicle for $25,000. David went to City Bank to finance the purchase. The bank required that David make a 10% down payment and monthly payments of $571.50 for 4 years. Find (a) the amount financed, (b) the finance charge, and (c) the deferred payment that David paid.

+2
Answers (1)
  1. 1 April, 21:46
    0
    a) $22,500

    b) $ 4,932

    c) david deferred the 22,500 dollars of the car in four years

    Explanation:

    a) ammount financed: principal less down payment

    25,000 less 10% down payment:

    25,000 - 2,500 = 22,500 amount financed

    b) finance charge would be the interest paid by David

    which is the difference between the amount financed and the total payment made by david

    571.50 monthly payment x 12 month per year x 4 years = 27,432

    27,432 - 22,500 = 4,932
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “David Nason purchased a recreational vehicle for $25,000. David went to City Bank to finance the purchase. The bank required that David ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers