Respuesta :
Answer:
A) $32,000 B) $37,500 C) $5,500
Step-by-step explanation:
Price of jeep: $37,000
Michael uses $5,000 of his own money toward that total $37,000-$5,000= $32,000
Monthly payments $625.00×60months=$37,500
After paying $5,000 of his own money, & bringing theamount owed to $32,000. Michael still has to pay back $37,500. Making, the finance chardge $5,500. ($37,500-$32,000= $5,500)
Amount financed = $32000, total amount of monthly payment = $37500 and total amount of the finance charge = $5500.
What is dealership finance ?
"Dealer financing is a type of loan that is originated by a retailer to its customers and then sold to a bank or other third-party financial institution. The bank purchases these loans at a discount and then collects principle and interest payments from the borrower. This is also called an indirect loan."
According to the question,
Given,
Price of jeep = $37000
Down payment = $5000
Total number of monthly payment = 60
Amount to be paid after down payment
= $37000 - $5000
= $32000 ____( 1 )
Amount paid in Monthly payments = $625.00 × 60months
= $37500 ____( 2 )
From ( 1 ) and ( 2 ) we get,
Finance charge amount = Total monthly amount - Total amount financed
= $37500 - $32000
= $5500
Hence, amount financed , total amount monthly payment and total amount of the finance charge is $32000 , $37500 and $5500.
Learn more about dealership finance here
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