(Blank)
TRUE OR FALSE: The Amount Financed + Downpayment is the amount you actually borrow
FALSE. Only the Amount Financed is the amount you actually borrow
TRUE OR FALSE: The APR represents the true or effective annual interest creditors charge.
TRUE
TRUE OR FALSE: Finance Charge = Interest Charge
TRUE
Cash Price - Downpayment = ?
Finance Charge
The true or effective annual interest creditors charge
Annual Percentage Rate
This represents the total of all monthly payments plus down payment
Deferred Payment Price = ? (Formula)
Cash Price - Down Payment = ?
Amount Financed
Cedric bought a Toyota Camry worth P 2,057,000. He paid P404,500 DP with a monthly amortization of P35,614 for 5 years. How much is the finance charge?
Finance Charge = Total of all monthly payments - Amount Financed
Total of all monthly payments = 35,614 x 60 = 2,136,840
Amount Financed = Cash Price - Down Payment = 2,057,000 - 404,500 = 1,652, 500
Finance Charge = 2,136,840 - 1,652,500 = P484,340