Question

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?

$9,803.52

$11,974.32

$12,849.32

$10,769.52

Answer 1

Which of the following is a characteristic of a deferred payment plan?

There is an introductory period where no interest is accrued.

The item purchased is used as collateral until the balance is paid in full.

A down payment is always required.

A certain number of payments must be made before the product is owned.

Answer 2

Heartache sadness, realizing he probably would of been better off taking up skydiving, who knows. Maybe the cost of the boat ignoring a small down payment which does not change the total price, is worth paying Nearly $20,000 dollars in shady business accounting in which 10.4% actually means 90% according to the fine print.

Answer 3

ok well I am looking for answer

Answer 4

If the interest to be paid is $8,880 (regardless of what the cheap introductory rate at the beginning is said to be, then that plus the actual cost of the boat is what must be paid. If however I am merely of poor learning and the amount of 8,880 was worded in a simpler way for one such as I to understand, then perhaps the boat would cost $9, 755 x 1.104. . Indeed an amount of $10,729.52 over the period of 72mo at a calm of just under $150 each month for the freedom, nay the pleasure of the waterways.

Answer 5

The bank is taking an interest rate of 10.4% from the loan you took wich is $8880.
So the total cost would be the amount $8880 plus the interest the bank is taking ie (10.4*8880)/100
Total cost = 8880+0.104*8880 = $9803.52

Answer 6

thank u so much !! @Stephanie12x3

Answer 7

is it 10,792.52 or 9803.52 ?

Answer 8

all I have left is this
Which of the following is a characteristic of a deferred payment plan?

There is an introductory period where no interest is accrued.

The item purchased is used as collateral until the balance is paid in full.

A down payment is always required.

A certain number of payments must be made before the product is owned.

Answer 9

@jim_thompson5910

Answer 10

To me to deferre has all the conotations of putting something off for a later time.

Answer 11

*defer? wow I have no idea how that would be spelled.

Answer 12

It is $9803.52

Answer 13

ya deferre means to put off for later in future. but it doesn't say that exactly in the answer choices

Answer 14

@Stephanie12x3 thank u. can u help me with the next one

Answer 15

Your welcome. & i believe it is D- a certain number of payments must be made before the product is owned.

Answer 16

thanks so much

Answer 17

the $9803.52 was wrong :(

Answer 18

and so was the other one

Answer 19

i know this is old but the answer to the deferred payment plan question was the first option: there is an introductory period where no interest is accrued