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19 December, 05:52

Determine the finance charge on a $6,500 loan with an interest rate of 9.5℅ compounded monthly over 36 months

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  1. 19 December, 06:04
    0
    The finace charge is $24,631.58
  2. 19 December, 06:09
    0
    A = P (1+r/n) ^ (nt)

    A = 6,500 (1 + 0.095/12) ^36

    A = 8,633.76

    8,633.76 - 6,500 = 2,133.76

    answer: finance charge would be $2,133.76
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