Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

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

Sagot :

tushargupta0691

The total finance charge is $611.20 (Option c) for this compound interest.

Data Given

Principal, P = $4250

Rate of Compound Interest, R = 13.25%

Time, t = 24 months, i.e., 2 years

Since it is compounded monthly, n = 12

Calculating the Total Finance Charge

We know that the formula for total amount of finance charge in a Compound Interest is,

[tex]A=P\frac{r(1+r)^{n} }{(1+r)^{n} - 1}[/tex]

Substituting the values of P, R and n, we get,

[tex]A=4250\frac{13.25(1+13.25)^{24} }{(1+13.25)^{24} - 1}[/tex]

[tex]A = 611.20[/tex]

Thus, the total finance charge is $611.20

Learn more on Compound Interest here:

https://brainly.com/question/14295570

#SPJ4

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.