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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. :-)

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