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Your friend just purchased a new sports car for $32,000. He received $6,000 for his trade in and he used that money as a down payment for the new sports car. He financed the vehicle at 6.76% APR over 48 months with a monthly payment of $619.15. Determine, from the given information, the finance charge.

Verified Answer :

The solution to the problem is as follows:

let


R = $619.15 periodic payment


i = 0.0676/12 the rate per month


n = 48 periods


S = the future value of an ordinary annuity


S = R[((1 + i)^n - 1)/i]


S = 619.15*[(1 + 0.0676/12)^48 - 1)/(0.0676/12)]


S = $34,015.99

I hope my answer has come to your help. God bless and have a nice day ahead!

Answer:

Answer is A- 889.41

Step-by-step explanation:

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