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16 June, 16:01

John borrowed $1200 from his credit union at 18% simple interest. He agrees to repay the loan by making

30 equal monthly payments.

11. How much is the finance charge? (Remember interest rate and time must have matching units.)

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Answers (1)
  1. 16 June, 16:21
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    1200 (1+.8 * 30/12) = 1740.00

    1740.00 - 1200 = $540
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