Chapter 13.II, Problem 26RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Calculate the finance charge and the annual percentage rate for the following installment loans by using the APR formula.

Amount |
Number of |
Monthly |
Finance |
||||||||

Financed |
Payments |
Payment |
Charge |
APR |
|||||||

26. | $8,850 | 30 | $333.35 |

To determine

**To calculate:** The finance charge and annual percentage rate if amount financed is

Explanation

**Given Information:**

The amount financed is

**Formula used:**

When the table to compute APR is not given, the annual percentage rate (APR) is computed by the formula:

Where, *I* is finance charge on the loan, *P* is principal or amount financed and *n* is number of monthly payment of the loan.

**Calculation:**

Consider that amount financed is

Compute the total amount of installment payments by substituting monthly payment and number of monthly payments:

Hence, the total amount of installment payment is

Compute the finance charge by substituting total amount of installment payment and amount financed:

Sect-13.I P-1TIESect-13.I P-2TIESect-13.I P-3TIESect-13.I P-1RESect-13.I P-2RESect-13.I P-3RESect-13.I P-4RESect-13.I P-5RESect-13.I P-6RESect-13.I P-7RE

Sect-13.I P-8RESect-13.I P-9RESect-13.I P-10RESect-13.I P-11RESect-13.I P-12RESect-13.I P-13RESect-13.I P-14RESect-13.I P-15RESect-13.I P-16RESect-13.I P-17RESect-13.I P-18RESect-13.II P-4TIESect-13.II P-5TIESect-13.II P-6TIESect-13.II P-7TIESect-13.II P-8TIESect-13.II P-9TIESect-13.II P-1RESect-13.II P-2RESect-13.II P-3RESect-13.II P-4RESect-13.II P-5RESect-13.II P-6RESect-13.II P-7RESect-13.II P-8RESect-13.II P-9RESect-13.II P-10RESect-13.II P-11RESect-13.II P-12RESect-13.II P-13RESect-13.II P-14RESect-13.II P-15RESect-13.II P-16RESect-13.II P-17RESect-13.II P-18RESect-13.II P-19RESect-13.II P-20RESect-13.II P-21RESect-13.II P-22RESect-13.II P-23RESect-13.II P-24RESect-13.II P-25RESect-13.II P-26RESect-13.II P-27RESect-13.II P-28RESect-13.II P-29RESect-13.II P-30RESect-13.II P-31RESect-13.II P-32RESect-13.II P-33RESect-13.II P-34RESect-13.II P-35RESect-13.II P-36RESect-13.II P-37RESect-13.II P-38RESect-13.II P-39RESect-13.II P-40RESect-13.II P-41RESect-13.II P-42RESect-13.II P-43RESect-13.II P-44RESect-13.II P-45RESect-13.II P-46RESect-13.II P-47RESect-13.II P-48RESect-13.II P-49RESect-13.II P-50RESect-13.II P-51RESect-13.II P-52RESect-13.II P-53RESect-13.II P-54RESect-13.II P-55RECh-13 P-1CRCh-13 P-2CRCh-13 P-3CRCh-13 P-4CRCh-13 P-5CRCh-13 P-6CRCh-13 P-7CRCh-13 P-8CRCh-13 P-9CRCh-13 P-10CRCh-13 P-11CRCh-13 P-12CRCh-13 P-13CRCh-13 P-14CRCh-13 P-1ATCh-13 P-2ATCh-13 P-3ATCh-13 P-4ATCh-13 P-5ATCh-13 P-6ATCh-13 P-7ATCh-13 P-8ATCh-13 P-9ATCh-13 P-10ATCh-13 P-11ATCh-13 P-12ATCh-13 P-13ATCh-13 P-14ATCh-13 P-15AT

Single Variable Calculus: Early Transcendentals, Volume I

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Precalculus: Mathematics for Calculus (Standalone Book)

Single Variable Calculus

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Essentials Of Statistics

Calculus: Early Transcendentals

Intermediate Algebra

Understanding Basic Statistics

Multivariable Calculus

Mathematical Applications for the Management, Life, and Social Sciences

Calculus (MindTap Course List)

Elementary Technical Mathematics

Probability and Statistics for Engineering and the Sciences

Calculus: An Applied Approach (MindTap Course List)

Calculus: Early Transcendental Functions

Statistics for The Behavioral Sciences (MindTap Course List)

Finite Mathematics and Applied Calculus (MindTap Course List)

Mathematical Excursions (MindTap Course List)

Applied Calculus

Elementary Geometry For College Students, 7e

Trigonometry (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Calculus: Early Transcendental Functions (MindTap Course List)

Calculus of a Single Variable

Elements Of Modern Algebra

Elementary Geometry for College Students

Finite Mathematics for the Managerial, Life, and Social Sciences

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Study Guide for Stewart's Multivariable Calculus, 8th

Research Methods for the Behavioral Sciences (MindTap Course List)

Research Methods for the Behavioral Sciences (MindTap Course List)

Statistics for Business & Economics, Revised (MindTap Course List)

College Algebra (MindTap Course List)

Introduction To Statistics And Data Analysis

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Multivariable Calculus

Mathematics: A Practical Odyssey

Mathematics For Machine Technology

Calculus (MindTap Course List)