Answered: Josh borrowed $500 for 1 year and paid…

Josh borrowed $500 for 1 year and paid $50 in interest. The bank charged a $5 service charge. What is the finance charge on this loan?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 71IIP

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Josh borrowed $500 for 1 year and paid $50 in interest. The bank charged a $5 service charge. What is the finance charge on this loan?

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