please explian thanks :)
I need to know how to figure out ....
A loan requires a 12% down payment and 24 equal monthly payments of $195.,what would the finance charge of the loan be
You did not specify how much was borrowed.
Sorry about that 4,200 would be the about borrowed. The loan requires a 12%
down payment and 24 equal monthly payments of $195. I need to figure out what would be the finance payment on the loan please explian how to do this thanks :)
First take 12% of $4200. Subtract it from $4200. That gives you the amount you're financing.
Next multiply 24 * 195. That gives you the total amount you'll pay.
Subtract the amount you're financing from the amount you'll pay.
Divide the amount you're financing by this difference.
If you post your answer, we'll be glad to check it.
To calculate the finance charge of a loan, you need to know the loan amount, the interest rate, and the length of the loan term. In this case, we are given that the down payment is 12% of the loan amount and there are 24 equal monthly payments of $195.
Step 1: Determine the loan amount.
Since the down payment is 12% of the loan amount, you can calculate the loan amount by dividing the down payment by 12%. Let's assume the loan amount is represented by L.
Down payment = 12% of L
Down payment = 0.12L
To find L, you can divide the down payment by 0.12:
L = Down payment / 0.12
Step 2: Calculate the finance charge.
The finance charge is the total amount of interest paid over the course of the loan term. To calculate this, you need to know the interest rate and the length of the loan term.
Since we have 24 equal monthly payments of $195, the total amount paid over the loan term can be calculated by multiplying the monthly payment by the number of payments:
Total amount paid = Monthly payment x Number of payments
Total amount paid = $195 x 24
To find the finance charge, subtract the loan amount from the total amount paid:
Finance charge = Total amount paid - Loan amount
Step 3: Substitute the values and calculate.
Substitute the values we've calculated into the equations and perform the calculations to find the finance charge.
L = Down payment / 0.12
L = (0.12L) / 0.12
Solving the equation for L, we find:
L = Down payment / 0.12
Total amount paid = $195 x 24
Finance charge = Total amount paid - Loan amount
Perform the calculations to find the finance charge.