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Purchase price of a used car: $5,553 Down Payment: $1,163 Number of monthly payments: 48 Total of...

Question:

Purchase price of a used car: $5,553

Down Payment: $1,163

Number of monthly payments: 48

Total of monthly payments: $5,609.76

Calculate

a. the amount financed,

b. the total finance charge, and

c. APR.

Down Payment:

Down payment is the out of pocket payment a buyer makes at the point of sale. The difference between the price of the item and the down payment is the amount borrowed.

Answer and Explanation:

a. The amount financed = price - down payment = 5,553 - 1,163 = 4,390.

b. The total finance charge = total payment - amount financed = 5,609.76 -...

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