Question

Choose the correct answers for amount financed and the finance charge in dollars for the following problem. Curtis Hindle purchased a mountain bike for $550.00 with 75% down. He will make 12 payments of $25.40 each. What is the total amount paid (including down payment) and finance charge in dollars? The total paid (including down payment) is $ . The finance charge in dollars is $

Answer 1

The total paid (including down payment) is $717.30

The finance charge in dollars is $167.30

Explanation:

Answer 2

Total paid = $717.3

Finance charge = $167.3

Explanation:

The cost price of mountain bike = $550

The down payment on bike = 75% of $550 = 0.75 * 550 = $412.5

We know that he will make 12 payments of $25.40 each so total monthly payments = 12 * 25.40 = $304.8

The total amount paid = Down payment + Total monthly payments = $412.5 + $304.8 = $717.3

The finance charge = Total amount paid - Cost price = $717.3 - $550 = $167.3