If you purchase a fishing boat for 18 monthly payments of $106 and an interest charge of $238, how much is the refund after 10 payments?
To calculate the refund amount after 10 payments, we need to first find out how much of the boat's cost has already been paid off after 10 payments.
Let's break down the given information:
- The fishing boat is being purchased for 18 monthly payments.
- Each monthly payment is $106.
- There is an interest charge of $238.
Since the interest charge is a one-time fee, we need to subtract it from the total cost of the boat. Therefore, the cost of the boat would be: 18 * $106 - $238.
To find out how much has been paid off after 10 payments, we multiply the monthly payment by the number of payments made: 10 * $106.
Finally, to calculate the refund amount, we subtract the amount paid off after 10 payments from the cost of the boat.
Let's perform the calculations:
Cost of boat: 18 * $106 - $238 = $1908 - $238 = $1670 (remaining balance)
Amount paid off after 10 payments: 10 * $106 = $1060
Refund amount: $1670 - $1060 = $610
Therefore, the refund after 10 payments would be $610.