Respuesta :
Marmee paid $38,000 for a new Toyota vehicle. Marmee put down $6,000 and paid $590 every month for 70 months. Total financing charges were $9300.
What are EMI and financing charges?
An equated monthly installment (EMI) is a fixed monthly payment made by a borrower to a creditor on a certain date each month. Each month, EMIs are applied to both interest and principle, and the loan is paid off in full over a number of years.
When a customer purchases a major commodity, such as a bike, automobile, or any vehicle, he normally pays a set amount of money upfront, with the remainder paid in the form of EMI with monthly or yearly installments. The down payment is the money made at the time of purchase. EMI stands for Equated Monthly Installment. According to the query, Marmee paid $38000 for the truck, with a $600 down payment. She made a monthly payment of $590. The formula for determining the total financing charge will now be developed.
Total finance charge = Months(EMI) - (Cost of the truck - Down payment)
Total finance charge = 70($590) - ($38000 - $6000)
Total finance charge = $41300 - $32000
Total finance charge = $9300
Learn more about EMI at:
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