Emma Weber purchased a bedroom set with an installment loan that has an APR of 12%. The bedroom set sells for $2,650. The store financing requires a 15% down payment and 42 monthly payments. What is the finance charge?

Question

amistre64 · Answer

how do we define 'finance charge'?

anonymous · Answer

other peoples answers of a word doc???

ccswims · Answer

I was replying to what the other guy put

anonymous · Answer

the equation they gave me was $$\frac{ pr(1+ r)^n }{ (1+r) }$$

amistre64 · Answer

im so glad theres a formula :)

anonymous · Answer

oh sorry i didnt see their comment

anonymous · Answer

yeah i plugged everything in and continue to get the wrong answer

amistre64 · Answer

define the p,r,n variables for me please

anonymous · Answer

Principle rate and number of months

anonymous · Answer

2,650 .12/100 and 42 months

amistre64 · Answer

2650 is not accurate to me.  we are paying 15% of it and only financing the remaining 85%

anonymous · Answer

so i should subtract the down payment?

anonymous · Answer

2252.50

amistre64 · Answer

i would, since we are not financing the cash we pay for it.

amistre64 · Answer

multiply your results by .85

amistre64 · Answer

if you did p = 2650,   and we want 2650(.85),  then a proper adjustment is to multiply the results you got by .85

amistre64 · Answer

make sure the rate you use is applicable as well.

12% is an apr,  a yearly rate ... do you want to use a yearly rate, or a monthly rate?

anonymous · Answer

okay thank you!!! (:

amistre64 · Answer

youre welcome :)  good luck