Answer:
The total amount paid = $780.06.
The finance charge = $130.06
Step-by-step explanation:
We have been given that Curtis Hindle purchased a mountain bike for $650.00 with 75% down. He will also make 12 payments of $24.38 each.
First of all let us find the amount of down payment paid by Curtis Hindle by calculating 75% of $650.
[tex]\text{Amount of down payment}=\frac{75}{100}\times \$650[/tex]
[tex]\text{Amount of down payment}=0.75\times \$650[/tex]
[tex]\text{Amount of down payment}=\$487.5[/tex]
Now let us find the amount paid for 12 payments by multiplying 12 by $24.38.
[tex]\text{Amount of 12 monthly payments}=12\times \$24.38[/tex]
[tex]\text{Amount of 12 monthly payments}=\$292.56[/tex]
To find the total amount paid by Curtis we will add the amounts paid for down payment and 12 monthly payments.
[tex]\text{Total amount paid by Curtis Hindle}=\$487.5+\$292.56[/tex]
[tex]\text{Total amount paid by Curtis Hindle}=\$780.06[/tex]
Therefore, the total amount paid by Curtis Hindle is $780.06.
To find the amount of finance charges we will subtract the cost of bike from total amount paid.
[tex]\text{The amount of finance charge}=\$780.06-\$650[/tex]
[tex]\text{The amount of finance charge}=\$130.06[/tex]
Therefore, the finance charges is $130.06.
