Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

You buy items costing $1000 and finance the cost with a fixed installment loan for 30
months at 4% simple interest per year.
a. What is the finance charge?
b. What is your monthly payment?

Sagot :

francocanacari

Answer:

The monthly payments will be $ 36.66, and the finance charge will be $ 100.

Step-by-step explanation:

Since I buy items costing $ 1000 and finance the cost with a fixed installment loan for 30 months at 4% simple interest per year, to determine what is the finance charge and what is my monthly payment, the following calculations must be performed:

1 year = 12 months

30 months / 12 = 2.5 years

(1000 x (1 + (0.04 x 2.5))) / 30 = X

(1000 x (1 + 0.1) / 30 = X

(1000 x 1.1) / 30 = X

1100/30 = X

36,666 = X

Therefore, the monthly payments will be $ 36.66, and the finance charge will be $ 100.

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.