Ane Windsor financed a $5,900 ski boat with a 12% add-on interest installment loan for 12 months. Given the loan required a 10% down payment, determine the following: The amount of the finance charge?

The amount of the finance charge rebate if the loan were to be paid after the 10th payment?

Jane must pay $ 5,947.2 over 12 months. Of that amount, $ 637.2 will correspond to interest generated by the loan, which will be paid in 12 installments of $ 495.6.

Step-by-step explanation:

Jane Windsor acquired a ski boat for $ 5,900, paying a down payment of 10% and financing the remainder of the price at an annual interest rate of 12%.

Thus, since 5,900 x 0.1 is equal to 590, the financed amount arises from the subtraction between 5,900 minus 590, which yields a financed amount of $ 5,310.

Therefore, the amount to be paid monthly arises from the following calculation:

5,310 x 1.12 = Amount with interest

5,947.2 = Amount with interest

5,947.2 - 5,310 = Interest

637.2 = Interest

5,947.2 / 12 = Monthly payments

495.6 = Monthly payments

Therefore, Jane must pay $ 5,947.2 over 12 months. Of that amount, $ 637.2 will correspond to interest generated by the loan, which will be paid in 12 installments of $ 495.6.

the answer is c)8

step-by-step explanaction: