Finance charge on a loan?
I need help with some homework. I'm not sure how to actually begin working out this problem, can someone help me understand how to determine the formula for this? Gene & May 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 options is to finance the furniture with a 2-year installment loan. The loan required 12% down payment and 24 equal monthly payments of $195. According to this information, what would be the finance charge on the loan? This is what I did.. if it's the right way, please confirm. $4200 is the cost $504 (12%) down --------- 3696 financed / 24 = ------------ 154 195 monthly payments - 154 -------- 41 * 24 = $ 984 <-- amount finaced? I'm also supposed to figure out the deferred payment price of the furniture. Do I just add the finance charge of $984 to the furniture price of the furniture $4200 or the price financed $3696??
Public Comments
- I have tried it myself, here is some good informations.http://homeloan.online-assistant.info/equity-home-loan-refinancing-utah.html
