Joanne Flynn bought a new boat for $43,200.00. She put $3,200.00 down. The bank loan was...

Joanne Flynn bought a new boat for $43,200.00. She put $3,200.00 down. The bank loan was for 36 months and interest charges totaled $5,000.00. Assume Joanne decided to pay the loan off after making 20 payments. 1.) What rebate would she be entitled to and 2.) what would the actual payoff amount be?
Step 1 Find the balance remaining.
Step 2 Calculate the total finance charge.
Step 3 Find the number of payments remaining.
Step 4 Set up the rebate fraction.
Step 5 Calculate the rebate amount of the finance charge.
Step 6 Calculate the payoff.

Find the finance charge on a credit card if the average daily balance for March is $465.00 and the monthly interest rate is 1.5%.

Expert Solution

Based on the information provided list of details is unable to identify : -

Total Finance charge and Rebate as rebate rate is not given.

Step 1 :

From the above we can able to identify Interest rate,

I = Interest payable / Principal amount * Time period.

from the problem we get to know that total interest paid for 36 months is = 5000

Hence interest rate is

Interest	5000
Principal	40000
Tenure	36

I = 5000 / (40000*36)

I = 0.35% Per Month or 4.166 per year. Assume finance cost is 5000 - 2621 = 2378

installment	Intial Amount	EMI	Interest	Principal
1	40000	($1,183.93)	138.89	($1,045.04)
2	$38,954.96	(1,183.93)	135.26	($1,048.67)
3	$37,906.29	(1,183.93)	131.62	($1,052.31)
4	$36,853.99	(1,183.93)	127.97	($1,055.96)
5	$35,798.02	(1,183.93)	124.30	($1,059.63)
6	$34,738.40	(1,183.93)	120.62	($1,063.31)
7	$33,675.09	(1,183.93)	116.93	($1,067.00)
8	$32,608.09	(1,183.93)	113.22	($1,070.70)
9	$31,537.38	(1,183.93)	109.50	($1,074.42)
10	$30,462.96	(1,183.93)	105.77	($1,078.15)
11	$29,384.81	(1,183.93)	102.03	($1,081.90)
12	$28,302.91	(1,183.93)	98.27	($1,085.65)
13	$27,217.26	(1,183.93)	94.50	($1,089.42)
14	$26,127.83	(1,183.93)	90.72	($1,093.21)
15	$25,034.63	(1,183.93)	86.93	($1,097.00)
16	$23,937.63	(1,183.93)	83.12	($1,100.81)
17	$22,836.82	(1,183.93)	79.29	($1,104.63)
18	$21,732.18	(1,183.93)	75.46	($1,108.47)
19	$20,623.72	(1,183.93)	71.61	($1,112.32)
20	$19,511.40	(1,183.93)	67.75	($1,116.18)
21	$18,395.22	(1,183.93)	63.87	($1,120.06)
22	$17,275.16	(1,183.93)	59.98	($1,123.94)
23	$16,151.22	(1,183.93)	56.08	($1,127.85)
24	$15,023.37	(1,183.93)	52.16	($1,131.76)
25	$13,891.61	(1,183.93)	48.23	($1,135.69)
26	$12,755.92	(1,183.93)	44.29	($1,139.64)
27	$11,616.28	(1,183.93)	40.33	($1,143.59)
28	$10,472.69	(1,183.93)	36.36	($1,147.56)
29	$9,325.12	(1,183.93)	32.38	($1,151.55)
30	$8,173.58	(1,183.93)	28.38	($1,155.55)
31	$7,018.03	(1,183.93)	24.37	($1,159.56)
32	$5,858.47	(1,183.93)	20.34	($1,163.59)
33	$4,694.88	(1,183.93)	16.30	($1,167.63)
34	$3,527.26	(1,183.93)	12.25	($1,171.68)
35	$2,355.58	(1,183.93)	8.18	($1,175.75)
36	$1,179.83	(1,183.93)	4.10	($1,179.83)

Balance payable after 20 th month is 18,395.

Remaining number of payment = 16.

Unable to find remaining information based on the details provided.

jeff jeffy answered 1 year ago

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