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jen purchased a vehicle, for $35,000. she put 20% down and financed the rest at 7.5% for five years. what is jen's total finance charge?

Sagot :

Parrain

The total that goes to Jen the total finance charge, based on the cost of the vehicle, is  $6, 603

How to find the total finance charge?

First, find the amount that Jen borrowed to buy the car:
= Cost of vehicle x ( 1 - down payment)

= 35, 000 x (1 - 20%)

= $28, 0000

The total amount that Jen would pay is:

28, 000 = Annuity x ( 1 - ( 1 +rate) ^ -number of years) / rate

28, 000 = Annuity x (1 - (1 + 7.5%)⁻⁵) / 7.5%

Annuity = 28, 000 / 4.04588

Annuity = $6, 920.62

Total finance charge is:
= (6, 920.62 x 5 years) - 28, 000

= $6, 603

Find out more on finance charge at https://brainly.com/question/3436429

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