Evan purchased a boat for $8,825. He made a down payment of $2,500. He applied for a three-year installment loan with an interest rate of 10.2%. What is the total cost of the boat after three years?

Question

2268 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2015-11-22T21:27:06

Assuming the 3 year loan is annual payments ...

Amount of Loan #=8825-2500=6325#

Annual Payment #=6325/[(1-1/(1+0.102)^3)/0.102]=2552.34#

Total Cost #= 2500+2552.34xx3=10157.02#

Hope that helped