Finance charges on a loan?
I need help with a caluclation.. I don't need the answer, I guess just the formula, or if someone could explain how I would get the answer to this: Wallace and Sarah have decided to purchase furniture for their new home. They have two payment options. The first option is to pay a cash payment of $4,200. The second option is to finance the furniture with a two-year installment loan. The loan requires a 12% down payment and 24 equal monthly payments of $195. According to this information, what would be the finance charge on the loan? A clear, understandable formula will be very helpful. Thanks so much! & what is the deferred payment price on the furniture?
Public Comments
- 12% down = $504.00 24 payments @ $195.00 = 4680.00 Total paid if you go this way = $5184.00 that's $984.00 extra
