Sue wants to buy a new car. Trustme Ford is offering new Mustang for $299 per month for 60 months, with a down payment of $3,200. The cash price for the car is $19,500. What is the finance charge? What is the deferred payment price?

Question

tkhunny · Answer

Is there an interest rate?  Perhaps we are to assume that the present value of the deferred payment plan is the same as the cash price?

anonymous · Answer

no thats just the question i have nothing else to work with.

anonymous · Answer

There are three primary formulas associated with installment purchases:

Amount Financed = Cash Price – Down Payment
Total Finance Charge = Total of Monthly Payments – Amount Financed
Deferred Payment Price = Total of Monthly Payments + Down Payment

1.	Sue wants to buy a new car. Trustme Ford is offering new Mustang for $299 per month for 60 months, with a down payment of $3,200. The cash price for the car is $19,500. What is the finance charge? What is the deferred payment price?