Jim wants to purchase a used boat. The price is $8,000 cash or $1,200 down and 18 monthly payments of $429.00. Jim decided to finance the bo

Question

Jim wants to purchase a used boat. The price is $8,000 cash or $1,200 down and 18 monthly payments of $429.00. Jim decided to finance the boat. Calculate the amount he will finance, the total amount of this monthly payments and the total finance charge.

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    2021-11-15T19:31:44+00:00

    The price for the boat is $8000 if paid in cash.

    Jim chose to finance the purchase.
    Money down = $1200, therefore
    The amount financed = $8000 – $1200 = $6800

    There are 18 monthly payments of $429, therefore
    Total monthly payments  = 18*$429 = $7722

    Total finance charge = $7722 – $6800 = $922

    Answers:
    Amount financed  = $6,800
    Total monthly payments = $7,711
    Total finance charge = $922

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