Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Get quick and reliable solutions to your questions from knowledgeable professionals on our comprehensive Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

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 choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.