Can someone please check over my answers? I'm not sure about them, especially part c.

A small boat can be bought for $3,000 cash or on the installment plan by paying $300 down and $108 a month for 30 months.
a) What is the installment price of the boat? $3,540

b) What is the finance charge? $540

c) What is the amount financed? $3,300

d) What is the finance charge per $100 of the amount financed? $16.36

a) Correct.

b) Correct.

c) The amount financed is $2,700 ($3,000 - $300 down payment).

d) Since you're financing 27 hundred dollars, the finance charge is $20 for each $100 (540 / 27 = 20).

Great, thanks!

You're welcome. :-)

To check over the answers, let's work through each part of the question:

a) Installment price of the boat: The installment price refers to the total amount paid for the boat when purchased on the installment plan. We can calculate this by adding the down payment to the monthly payments over 30 months.

Down payment: $300
Monthly payment: $108
Number of months: 30

Total installment price = Down payment + (Monthly payment x Number of months)
Total installment price = $300 + ($108 x 30)
Total installment price = $300 + $3,240
Total installment price = $3,540

Therefore, the installment price of the boat is $3,540.

b) Finance charge: The finance charge represents the additional amount paid for the convenience of paying in installments. To calculate this, we subtract the cash price of the boat from the installment price.

Cash price: $3,000
Installment price: $3,540

Finance charge = Installment price - Cash price
Finance charge = $3,540 - $3,000
Finance charge = $540

Therefore, the finance charge is $540.

c) Amount financed: The amount financed refers to the total loan amount, which is the difference between the installment price and the down payment.

Installment price: $3,540
Down payment: $300

Amount financed = Installment price - Down payment
Amount financed = $3,540 - $300
Amount financed = $3,240

Therefore, the amount financed is $3,240.

d) Finance charge per $100 of the amount financed: This calculation determines how much finance charge is applied for each $100 of the loan amount. To calculate this, we divide the finance charge by the amount financed, then multiply by 100.

Finance charge: $540
Amount financed: $3,240

Finance charge per $100 = (Finance charge / Amount financed) x 100
Finance charge per $100 = ($540 / $3,240) x 100
Finance charge per $100 = 0.1667 x 100
Finance charge per $100 ≈ $16.67

Therefore, the finance charge per $100 of the amount financed is approximately $16.67.

If your answers align with the calculations above, then they are correct.