Given:
Cost of Truck = $16000
Down payment amount = $3000
EMI = $250
Duration of EMI = 60 Months
Required:
a) Total amount financed
b) Total finance charge paid at the end of 60 months
Explanation:
Total cost of Truck = $16000
The total amount taken from other source = Total Amount - Down payment
=$16000-$3000
=$13000
EMI = $ 250
[tex]Total\text{ }amount\text{ }paid\text{ }at\text{ }the\text{ }end\text{ }of\text{ }60\text{ }months=250\times60[/tex][tex]Total\text{ }amount\text{ }paid\text{ }at\text{ }the\text{ }end\text{ }of\text{ }60\text{ }months=15000[/tex]
Total amount paid at the end of 60 months = $15000
The total amount financed = Actual price -Down payment
=$16,000- $3000
=$13000
a) Total amount financed =3$18000
The total finance charged = Actual price - amount paid monthly for 60 months.
=$16000-$15000
=$1000
b)The total finance charged =1$20
AnswerHence the total amount finance is 13000 dollar.
The total finance charged is 1000 dollar.00
