Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will make 12 payments of $24.38 each. What is the total amount paid (including down payment) and finance charge in dollars?
To find the total amount paid, including the down payment and the 12 payments, we need to calculate the down payment and the total cost of the payments.
1. Down payment: The down payment is 75% of $650.00. To find this amount, we multiply $650.00 by 0.75:
Down payment = $650.00 * 0.75 = $487.50
2. Total cost of the payments: To find the total cost of the 12 payments, we multiply the monthly payment amount by the number of payments:
Total cost of payments = $24.38 * 12 = $292.56
3. Total amount paid: To find the total amount paid, we add the down payment to the total cost of the payments:
Total amount paid = Down payment + Total cost of payments
= $487.50 + $292.56
= $780.06
So, the total amount paid, including the down payment, is $780.06.
Now let's calculate the finance charge.
1. Purchase price: The purchase price is the total amount paid minus the down payment:
Purchase price = Total amount paid - Down payment
= $780.06 - $487.50
= $292.56
2. Finance charge: The finance charge is the difference between the purchase price and the original price:
Finance charge = Purchase price - Original price
= $292.56 - $650.00
= -$357.44
Since the finance charge is negative, it means that there is no finance charge in this case.
Therefore, the total amount paid (including the down payment) is $780.06 and there is no finance charge.
To find the total amount paid, we need to add the down payment to the total of the monthly payments.
The down payment is 75% of the total cost of the mountain bike. To calculate this, we can use the following formula:
Down payment = (Percentage / 100) * Total cost
In this case, the total cost of the mountain bike is $650.00, and since the down payment is 75%, we can calculate the down payment as follows:
Down payment = (75 / 100) * $650.00
Down payment = 0.75 * $650.00
Down payment = $487.50
So the down payment is $487.50.
Now, to find the total amount paid, we need to add the down payment to the total of the monthly payments. The total amount paid can be calculated using the formula:
Total amount paid = Down payment + (Number of payments * Monthly payment)
Number of payments = 12
Monthly payment = $24.38
Total amount paid = $487.50 + (12 * $24.38)
Total amount paid = $487.50 + $292.56
Total amount paid = $780.06
Therefore, the total amount paid (including the down payment) is $780.06.
To calculate the finance charge, we need to subtract the total cost of the mountain bike (before any payments) from the total amount paid.
Finance charge = Total amount paid - Total cost of mountain bike
Total cost of mountain bike = $650.00
Total amount paid = $780.06
Finance charge = $780.06 - $650.00
Finance charge = $130.06
Therefore, the finance charge is $130.06.
0.75 * 650 + 12* 24.38 = 487.5 + 292.56 = 780.06
780.06 - 650 = 130.06