Asked by emanol

What is the total finance charge for a $4,250 loan at 13.25% interest compounded monthly for 24 months?
a.
$25.47
b.
$202.55
c.
$611.20
d.
$4,861.20


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Monthly rate i = 0.1325/12 = 0.0110416667. Monthly payment:
PMT = 4250 * [i / (1 - (1+i)^(-24))] ≈ $202.55.
Total paid = 202.55 × 24 = $4,861.20.
Finance charge = 4,861.20 − 4,250 = $611.20.

Answer: C