The morrison family bought a car for $22,000 which was financed at $600 per month for 40 months. The down payment was $3,000.
What is the installment price?
What is the financial charge and amount financed?
22,000 cost before interest
less 3,000 down payment
19,000 amount financed
600/mo for 40 mo = 24,000 total cost with interest
24,000 - 19,000 = 5000.00 interest on amt financed
5000/19000 = 26.32% simple interest rate
5000 finance chrg
19,000 amount financed
24,000 installment price ??
I am not a tutor
1. Ling has received been approved for a Visa credit card with a $2000 credit limit, however he has not charged that much since opening the account. On April 24, he discovers a monthly statement from March that had accidentally slid down between his desk and the wall. Because he has been busy at work, he has not had time to carefully review his monthly statements, but is spending the weekend catching up on paying bills and organizing his desk. He is particularly interested in how much he still owes the credit card company.
He reviews the statement and discovers that there is a page missing – the one with the unpaid balance. He can see that his beginning balance for March (March 1 through March 31) was $700 and that he paid $250 on March 12, charged purchases of $50 on March 5, $100 on March 20, and $50 on March 30. Ling remembers that the Annual Percentage Rate (APR) on the credit card is 16% of the unpaid balance and interest is charged using the average daily balance method, including current purchases.
a. (5 points) Find the unpaid balance for the March statement (before interest was charged).
Answer: 650.00
b. (5 points) Find the average daily balance for the month of March (assume 31 days):
Answer:
c. (5 points) Calculate how much interest Ling must pay in addition to the minimum payment.
Answer:
28.35
To calculate the installment price, we need to add up the down payment and the total amount financed.
The down payment is given as $3,000.
The total amount financed can be calculated by multiplying the monthly payment by the number of months: $600 * 40 = $24,000.
Now we can calculate the installment price by adding the down payment to the total amount financed: $3,000 + $24,000 = $27,000.
Therefore, the installment price is $27,000.
To find the financial charge, we need to subtract the amount financed from the installment price.
The amount financed is $24,000, as calculated earlier.
To find the financial charge, subtract the amount financed from the installment price: $27,000 - $24,000 = $3,000.
Therefore, the financial charge is $3,000.
Lastly, the amount financed is already given as $24,000.
Therefore, the amount financed is $24,000.