Jay Lee plans to put $3,680 down on a vehicle costing $28,680 and will finance a vehicle for 48 months

Finance Dec 18, 2020

Jay Lee plans to put $3,680 down on a vehicle costing $28,680 and will finance a vehicle for 48 months. His monthly payments will be $610.32. What would be Jay's finance charges?

Expert Solution

Finance charges = (Monthly payments*Number of payments)-principal amount

Here,

Number of Monthly payments=48 months
Monthly payments = $610.32
Principal amount borrowed = vehicle cost-down payments

=$28,680-$3,680

=$25,000

Finance charges = ($610.32*48months)-$25,000

=$4,295.36

Thus, finance charges are $4,295.36

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