Asked by Ricky
A bank offers a 24-month installment loan with an APR of 10%. Alicia wishes to use the loan to finance a sailplane for $42,800. After first using Table 13-1 to find the finance charge, calculate the monthly payment.
Answers
Answered by
Ms. Sue
What is the finance charge?
Answered by
Reiny
Working this without archaic tables, instead using modern technology .... (a basic scientific calculator)
i = .10/12 = .0083333...
n = 24
42800 = paym(1 - 1.0083333...^-24)/.0083333...
paym = 1975.00
using your tables:
42800/100 = 428
charge per 100 for 24 months = 10.75
so total interest charge = 10.75(428) = 4601
amount repayable = 42800+4601= 47401
divided into 24 payments ----47401/24 = 1975.04
compare with proper answer above.
i = .10/12 = .0083333...
n = 24
42800 = paym(1 - 1.0083333...^-24)/.0083333...
paym = 1975.00
using your tables:
42800/100 = 428
charge per 100 for 24 months = 10.75
so total interest charge = 10.75(428) = 4601
amount repayable = 42800+4601= 47401
divided into 24 payments ----47401/24 = 1975.04
compare with proper answer above.
Answered by
Ricky
(amount financed + finance charge)/#months of loan, same answer! thank you so much,.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.