Math

posted by .

Tim Worker buys a new sofa for $549.95. He pays 20% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $50.00 finance charge. What is the APR on his loan?

The down payment is $

The amount financed is $

The monthly payment will be $

At the end of one year the monthly payments will total $

The finance charge for one year ÷ amount financed is %

  • Math -

    Which of these questions don't you understand?

  • Math -

    It's all one whole question!
    Can you just tell me the steps to solve each one you do not have to tell me the answer! I just need to know how to get the answer so I will know how to do this problem again ..

  • Math -

    What is the APR on his loan?
    Divide the price by his total payments. Multiply that by 100.

    The down payment is $
    Multiply the price by 0.2

    The amount financed is $
    Subtract the down payment from the price.

    The monthly payment will be $
    Add $50 to the amount financed. Divide by 12


    At the end of one year the monthly payments will total $
    Multiply the total payments by 12.

  • Math -

    Is the price 549.95?

  • Math -

    Yes.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    please help me I am not really sure about this please check answer thanks :) Mary has decided to purchase furniture. She has 2 choices she can pay the full amount of $4,200.The other choice is to finance the furniture for two years …
  2. Math

    please check my answer thanks :) Mark has a finance charge on a loan of $984.00 based on the information below what is the total deferred payment price. price of loan is $4,200 Mark is going finance his purchase with a two-year installment …
  3. Maths

    In order to make some home improvements, a home owner spent $40,000. He paid 20% as a down payment and financed the balance of the purchase with a 36-month fixed installment loan with an APR of 7.5%. Determine the home owner’s a) …
  4. Math

    Mr. and Mrs Smith have decided to buy new furniture. They have 2 options. The first is to pay cash of $4,200.00, the second is to finance with a 2 year installment loan. They would have to put down 12% with 24 equal payments of $195.00. …
  5. business math

    financing furniture that costs $4200.00 with a two year installment loan. The loan requires a 12% down payment and 24 equal monthly payments of $195.00. According to this information, what would be the finance charge on the loan?
  6. math

    Tim Worker buys a new sofa for $629.95. He pays 25% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $60.00 finance charge. What is the APR on his loan to the nearest …
  7. consumer math

    Tim Worker buys a new sofa for $629.95. He pays 25% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $60.00 finance charge. What is the APR on his loan to the nearest …
  8. math

    A carpenter spent $4500 to purchase a table saw , a circular saw, and a panel saw. He paid 5% down and financed the balance with a 30-month fixed installment loan with an APR of 5.0%. Determine the total finance charge and monthly …
  9. Business Math

    Jeanna wants to buy a new boat for her family. She has two payment options. The first option is to pay a cash payment of $7,200. The second option is to finance the boat with a three year installment loan. The loan requires a 10% down …
  10. Math

    1. Rishi ram obtained an installment loan for $3,000.00. He agreed to repay the loan in 6 monthly payments. His monthly payments is $516.50. What is the APR?

More Similar Questions