Question

Don and Linda would like to replace the hardwood flooring in their dining room. The flooring sells for $15.75 a square foot installed. The room size is 15 feet wide by 22 feet long. They can make a 20% down payment but will need to finance the rest at 12% for 42 months

a. What is the down payment?
b. What is the amount financed?
c. What is the monthly payment?
d. What is the total finance charge?

Answer 1

a) Down payment = $1039.50

b) Amount financed = $4158

c) Monthly payment = $121.73

d) Total finance charge = $5112.66

Explanation:

Area of rectangle = width × length

⇒ area of room = 15 × 22 = 330 ft²

Given:

• cost of flooring = $15.75 per ft²

⇒ Total cost of flooring = area × cost = 330 × 15.75 = $5197.50

a) Down payment = 20% of $5197.50

= 0.2 × 5197.50

= $1039.50

b) Amount financed = total cost - down payment

= 5197.50 - 1039.50

= $4158

c) Monthly payment =
`(4158 \cdot (0.12)/(12)(1+(0.12)/(12))^(42))/((1+(0.12)/(12))^(42)-1)`= $121.73

d) Total finance charge = monthly payment × number of months

= 121.73 × 42

= $5112.66