Frank purchased a boat for $7,525. He made a down payment of $475. He applied for a six-year installment loan with an interest rate of 8.4% in the amount of $7,050. What is the total cost of the boat after six years?

Question

hero · Answer

Hint: 

$$A = P(1 + \frac{r}{n})^{nt}$$

A = Cost of Boat 
P = Initial Amount
R = Interest Rate
N = Number of times Compounded per year
T = No of years compounded

hero · Answer

Did  you figure out the Cost of the boat after six years?

anonymous · Answer

Working on it right now. Just had to find myself a pencil.

hero · Answer

Okay, if you don't mind, please post your answer afterwards.

anonymous · Answer

I'm sorry. I'm a tad bit lost. It's not compounded, I think?

hero · Answer

Are you working with simple interest?

anonymous · Answer

No, I already did that. I'm into the section with deferred payments and installment loans.

hero · Answer

And what is the name of this course?

anonymous · Answer

Advanced Algebra with Financial Applications. I'm into the spending section at the moment.

hero · Answer

I see. Okay, I will see if I can find an appropriate solution for this

anonymous · Answer

Thank you.