Felix purchased a boat for $9,755. He made a down payment of $875. He applied for a six-year installment loan with an interest rate of 10.4% in the amount of $8,880. What is the total cost of the boat after six years?

Question

anonymous · Answer

$$[1-(1.104^{\neg6})]\div0.104 \approx 4.3047$$
$$8880\div4.3047 \approx 2063$$
$$2063\times6 = 12378$$
$$12378+875=13253$$
Total cost = $13,253

Note: Interest cost = 12378 - 8880 = $3,498