# CALCULATING THE COST OF TOTAL CREDIT Personal Finance.

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CALCULATING THE COST OF TOTAL CREDIT Personal Finance

1. Sam purchases a car with a selling price of \$16,950.00. He puts down \$4000 and pays the \$416.45 each month for 36 months. What is the total cost of the car? 416.45 *36 = 14992.2018992.20 + 4000.00 - 16950.00 18992.20 2042.20 (cost of credit)

Jackie decides to lease a car for two years. She puts 0 money down and pays \$209.15 per month for 24 months. At the end of the lease, Jackie can buy the car for \$11,345.00. The selling price for the car today is \$13,500.00. What is the total cost of the car if Jackie buys it at the end of the lease? 209.15 * 24 = 5019.60 +11345.00 16364.60

A living room suit is advertised for \$890.00. No payments are required for 12 months. At the end of twelve months, Jessica finds she has to pay \$1075.00. What is the total cost of credit? 1075.00 - 890.00 185.00 (Interest or Cost of Credit)

4. a) The bank offers Bill a car loan for 48 months at a rate of 13%. Bill buys a car for \$23,890.00. He puts \$3000.00 down and takes a bank loan for the balance. What is the total cost of the car? 23890.0020890.0020890.00 - 3000.00 *.13 + 10862.80 20890.00 2715.7031752.80 *4 + 3000.00 10862.8034752.80 cost of credit

B) If Bill puts down \$7,500 how does that affect the total cost of the car? 23890.0016390.0016390.00 - 7500.00 *.13 + 8522.80 16390.00 2130.7024912.80 *4 + 7500.00 8522.8032412.80 cost of credit

5. Katie buys a snowmobile for \$2,200.00. She pays with her credit card. When she gets the bill, she pays in full before the due date. What is the total cost of the snowmobile? \$2200 – Interest is charged on the balance carried forward

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