Find \[$ C \$\] And \[$ I \$\]. Choose The Right Answers.Hint: \[$ C = \$\] Total Of Payments - Amount FinancedAmount Financed \[$(m) = \$ 3,500\$\]Number Of Payments Per Year \[$(y) = 12\$\]Number Of Payments

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Finding the Right Answers: Calculating Total Payments and Amount Financed

Understanding the Problem

In this problem, we are tasked with finding the value of two variables: c and I. These variables are related to the total payments and amount financed in a loan. To find the correct values, we need to understand the given information and apply the correct formulas.

Given Information

  • Amount Financed (m) = $3,500
  • Number of Payments per year (y) = 12
  • Number of Payments (n) = ?

Calculating the Number of Payments

The number of payments (n) can be calculated by multiplying the number of payments per year (y) by the number of years (x). However, since the number of years is not given, we will assume that the number of payments is for a single year. Therefore, the number of payments (n) is equal to the number of payments per year (y), which is 12.

Calculating the Total Payments

The total payments (c) can be calculated by multiplying the amount financed (m) by the number of payments (n). However, we need to consider the interest rate and the number of payments per year (y) to calculate the total payments accurately.

Calculating the Interest Rate

Since the interest rate is not given, we will assume that the interest rate is 0% for simplicity. In this case, the total payments (c) will be equal to the amount financed (m) plus the amount financed (m) multiplied by the number of payments (n).

Calculating the Total Payments (c)

Using the formula:

c = m + m * n

Substituting the values:

c = $3,500 + $3,500 * 12

c = $3,500 + $42,000

c = $45,500

Calculating the Amount Financed (I)

The amount financed (I) is equal to the amount financed (m) multiplied by the number of payments (n).

I = m * n

Substituting the values:

I = $3,500 * 12

I = $42,000

Conclusion

In conclusion, the total payments (c) is $45,500 and the amount financed (I) is $42,000. These values are calculated by applying the correct formulas and using the given information.

Discussion

This problem requires a basic understanding of finance and mathematics. The student needs to apply the correct formulas and use the given information to calculate the total payments and amount financed. The student also needs to consider the interest rate and the number of payments per year to calculate the total payments accurately.

Key Takeaways

  • The total payments (c) can be calculated by multiplying the amount financed (m) by the number of payments (n).
  • The amount financed (I) is equal to the amount financed (m) multiplied by the number of payments (n).
  • The interest rate and the number of payments per year (y) need to be considered to calculate the total payments accurately.

Additional Practice Problems

  • Calculate the total payments and amount financed for a loan with an amount financed of $5,000 and a number of payments per year of 12.
  • Calculate the total payments and amount financed for a loan with an amount financed of $10,000 and a number of payments per year of 12.
  • Calculate the total payments and amount financed for a loan with an amount financed of $15,000 and a number of payments per year of 12.

Answer Key

  • Total payments (c) = $45,500
  • Amount financed (I) = $42,000
    Frequently Asked Questions: Calculating Total Payments and Amount Financed

Q: What is the formula for calculating the total payments (c)?

A: The formula for calculating the total payments (c) is:

c = m + m * n

Where m is the amount financed and n is the number of payments.

Q: What is the formula for calculating the amount financed (I)?

A: The formula for calculating the amount financed (I) is:

I = m * n

Where m is the amount financed and n is the number of payments.

Q: What is the interest rate and how does it affect the total payments (c)?

A: The interest rate is not given in this problem, so we will assume that the interest rate is 0% for simplicity. In this case, the total payments (c) will be equal to the amount financed (m) plus the amount financed (m) multiplied by the number of payments (n).

Q: How do I calculate the total payments (c) if the interest rate is not 0%?

A: To calculate the total payments (c) if the interest rate is not 0%, you need to use the formula:

c = m + m * n * (1 + r)^n

Where m is the amount financed, n is the number of payments, and r is the interest rate.

Q: What is the difference between the total payments (c) and the amount financed (I)?

A: The total payments (c) is the total amount paid by the borrower, including the amount financed (I) and the interest charged on the loan. The amount financed (I) is the initial amount borrowed by the borrower.

Q: How do I calculate the number of payments (n) if I know the number of payments per year (y) and the number of years (x)?

A: To calculate the number of payments (n), you can multiply the number of payments per year (y) by the number of years (x):

n = y * x

Q: What is the significance of the number of payments per year (y) in calculating the total payments (c)?

A: The number of payments per year (y) affects the total payments (c) because it determines how often the borrower makes payments on the loan. A higher number of payments per year (y) will result in a higher total payments (c).

Q: Can I use a calculator to calculate the total payments (c) and amount financed (I)?

A: Yes, you can use a calculator to calculate the total payments (c) and amount financed (I). Simply enter the values for the amount financed (m), number of payments (n), and interest rate (r) into the calculator and it will give you the total payments (c) and amount financed (I).

Q: What are some common mistakes to avoid when calculating the total payments (c) and amount financed (I)?

A: Some common mistakes to avoid when calculating the total payments (c) and amount financed (I) include:

  • Not considering the interest rate
  • Not using the correct formula
  • Not entering the correct values into the calculator
  • Not understanding the difference between the total payments (c) and the amount financed (I)

Q: How can I practice calculating the total payments (c) and amount financed (I)?

A: You can practice calculating the total payments (c) and amount financed (I) by using online calculators or working through sample problems. You can also try using different values for the amount financed (m), number of payments (n), and interest rate (r) to see how they affect the total payments (c) and amount financed (I).