Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10% of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8% for the loan and require monthly payments over the next 4 years. Mark's monthly payments are 353.50 per month. What is Mark's total finance charge if he takes the full 4 years to pay off the loan

The finance charge is $2,118

Explanation:

The fund that Mark is going to fund through loan = $21000 - $4500

= $16,500

This means that the total finance that the bank requires is $4500 plus ten percent of $16500.

Which is:

Down payment = $4500 + $16,500*10% = $6150

The interest would be charged on the remainder amount = $21,000 - $6150 = $14,850

The total interest paid over four year period = $353.5 * 12 months * 4 years

= $16,968

The net difference is the interest paid which is:

Interest Paid / Finance Charge = $16,968 - $14,850 = $2118

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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