Question

The cost of a new car is $16,500. You can Finance the purchase by paying $500 down, and $350 a month for 60 months. What is the amount financed (Cash Price - Down Payment)?

Answer 1

the amount financed is $16,000

Explanation:

The computation of the amount financed is shown below:

As we know that

Amount financed = cash price - down payment

= $16,500 - $500

= $16,000

Hence, the amount financed is $16,000

If we deduct the down payment from the cash price so we can get the amount financed

And, the same would be considered