MATH SOLVE

3 months ago

Q:
# Henry buys a large boat for the summer, however he cannot pay the full amount of $32,000 atonce. He puts a down payment of $14,000 for the boat and receives a loan for the rest of thepayment of the boat. The loan has an interest rate of 5.5% and is to be paid out over 4 years.What is Henry’s monthly payment, and how much does he end up paying for the boat overall?

Accepted Solution

A:

Answer:Monthly Payment = $457.5Total amount Henry end up paying for the boat overall = $35,960Step-by-step explanation:Total Amount to be paid = $32,000Down Payment = $ 14,000Interest rate = 5.5%Total time for Amount to be paid = 4 yearsRest of the payment to be paid = 32,000 - 14,000= 18000Amount of interest = P*r*tP= Principal Amountr = ratet = timePutting valuesAmount of interest= 0.055 *18000*4 = 3960Total Remaining payment = 18000+3960 = 21,960As Payment to be paid in 4 years, So number of months = 4*12 = 48 monthsMonthly payment = Total Payment / Months = 21,960/48 = 457.5So, Monthly Payment = $457.5Total amount Henry end up paying for the boat overall = Down Payment + Remaining Payment=14,000+21960 = 35960So, Total amount Henry end up paying for the boat overall = $35,960