Note: Round all answers to the nearest cent when necessary.
Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan.
Purchase
(Cash)
Price	Down
Payment	Amount
Financed	Monthly
Payment	Number of
Payments	Finance
Charge	Total
Deferred
Payment
Price
$3,300	20%	$
Correct: Your answer is correct.
$242.00	12	$
Correct: Your answer is correct.
$
Incorrect: Your answer is incorrect.

Let's break down this installment loan calculation step by step. You have provided the following details:

- **Purchase Price (Cash Price):** $3,300
- **Down Payment:** 20% of the purchase price
- **Monthly Payment:** $242.00
- **Number of Payments:** 12

We need to calculate:

1. **Amount Financed** (which is the purchase price minus the down payment)
2. **Finance Charge** (the total extra amount paid over the loan due to interest)
3. **Total Deferred Payment Price** (the total amount paid over the term of the loan, including both the amount financed and the finance charge)

### 1. Amount Financed:
First, calculate the down payment, which is 20% of $3,300.

\[
\text{Down Payment} = 0.20 \times 3,300 = 660
\]

Now, subtract the down payment from the purchase price to find the **amount financed**:

\[
\text{Amount Financed} = 3,300 - 660 = 2,640
\]

So, the **amount financed** is **$2,640.00**.

### 2. Total Deferred Payment Price:
The total deferred payment price is the total amount paid over the life of the loan, which is the monthly payment multiplied by the number of payments.

\[
\text{Total Deferred Payment Price} = 242 \times 12 = 2,904
\]

So, the **total deferred payment price** is **$2,904.00**.

### 3. Finance Charge:
The finance charge is the total deferred payment price minus the amount financed:

\[
\text{Finance Charge} = 2,904 - 2,640 = 264
\]

So, the **finance charge** is **$264.00**.

### Final Summary:
- **Amount Financed:** $2,640.00
- **Finance Charge:** $264.00
- **Total Deferred Payment Price:** $2,904.00

Would you like further details or have any questions?

Here are 5 related questions:
1. What is the impact of increasing the down payment on the finance charge?
2. How would changing the interest rate affect the finance charge and monthly payment?
3. How is the finance charge calculated if the monthly payments vary?
4. Can the loan term (number of payments) affect the total finance charge?
5. What other fees can be part of a finance charge calculation?

**Tip:** Always compare the total deferred payment price with the original purchase price to understand the impact of financing.

Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Purchase price: $3,300, Down payment: 20%, Monthly payment: $242.00, Number of payments: 12.

Learn how to calculate the amount financed, finance charge, and total deferred payment price for a $3,300 loan with a 20% down payment. This problem demonstrates key concepts such as percentage calculation and loan amortization, ideal for students in Grades 9-12.

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