Answer:
Jane must pay $ 5,947.2 over 12 months. Of that amount, $ 637.2 will correspond to interest generated by the loan, which will be paid in 12 installments of $ 495.6.
Step-by-step explanation:
Jane Windsor acquired a ski boat for $ 5,900, paying a down payment of 10% and financing the remainder of the price at an annual interest rate of 12%.
Thus, since 5,900 x 0.1 is equal to 590, the financed amount arises from the subtraction between 5,900 minus 590, which yields a financed amount of $ 5,310.
Therefore, the amount to be paid monthly arises from the following calculation:
5,310 x 1.12 = Amount with interest
5,947.2 = Amount with interest
5,947.2 - 5,310 = Interest
637.2 = Interest
5,947.2 / 12 = Monthly payments
495.6 = Monthly payments
Therefore, Jane must pay $ 5,947.2 over 12 months. Of that amount, $ 637.2 will correspond to interest generated by the loan, which will be paid in 12 installments of $ 495.6.
