A4) Monthly Payments and Finance Charges or an Add-on Rate Loan Zachary Porter of Abilene, Texas, is contemplating borrowing $13,500 from his bank. The bank could use add-on rates of 7.0 percent for 3 years, 7.3 percent for 4 years, and 8.2 percent for 5 years. Use the following equation to calculate the finance charge and monthly payment for these three options. Round your answers to the nearest cent. For the 7.0 percent loan the finance charge would be $ . For the 7.0 percent loan the monthly payment would be $ . For the 7.3 percent loan the finance charge would be $ . For the 7.3 percent loan the monthly payment would be $ . For the 8.2 percent loan the finance charge would be $ . For the 8.2 percent loan the monthly payment would be $ .
A4) Monthly Payments and Finance Charges or an Add-on Rate Loan Zachary Porter of Abilene, Texas, is contemplating borrowing $13,500 from his bank. The bank could use add-on rates of 7.0 percent for 3 years, 7.3 percent for 4 years, and 8.2 percent for 5 years. Use the following equation to calculate the finance charge and monthly payment for these three options. Round your answers to the nearest cent. For the 7.0 percent loan the finance charge would be $ . For the 7.0 percent loan the monthly payment would be $ . For the 7.3 percent loan the finance charge would be $ . For the 7.3 percent loan the monthly payment would be $ . For the 8.2 percent loan the finance charge would be $ . For the 8.2 percent loan the monthly payment would be $ .
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 9FPE: Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five...
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A4)
Monthly Payments and Finance Charges or an Add-on Rate Loan
Zachary Porter of Abilene, Texas, is contemplating borrowing $13,500 from his bank. The bank could use add-on rates of 7.0 percent for 3 years, 7.3 percent for 4 years, and 8.2 percent for 5 years. Use the following equation to calculate the finance charge and monthly payment for these three options. Round your answers to the nearest cent.
For the 7.0 percent loan the finance charge would be $ .
For the 7.0 percent loan the monthly payment would be $ .
For the 7.3 percent loan the finance charge would be $ .
For the 7.3 percent loan the monthly payment would be $ .
For the 8.2 percent loan the finance charge would be $ .
For the 8.2 percent loan the monthly payment would be $ .
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