Chelsea made monthly payments for four years before her $13,440 loan was paid off. The loan had an interest rate of 5.86%, compo

Question

3 years ago

14

Chelsea made monthly payments for four years before her $13,440 loan was paid off. The loan had an interest rate of 5.86%, compo

unded monthly. Chelsea paid $156.60 in service charges. To the nearest tenth, what percentage of the total cost of the loan did her finance charges comprise? Round all dollar values to the nearest cent.

Mathematics

2 answers:

lana [24] · Answer 1 · 2021-11-20T21:07:20+03:00

lana [24]3 years ago

6 0

Given:
PV = 13,440
i = 5.86% , compounded monthly
t = 4 years

13,440(0.0586/12))/(1-(1+0.0586/12)^-48= 15,109.44
15,109.44 + 156.60 = 15,266.04
15,266.04 - 13,440.00 = 1,826.04
<span>1,826.04/15,266.04 = 11.96 % Percentage total of Finance Charge of the total loa</span>

Colt1911 [192] · Answer 2 · 2021-11-20T22:55:52+03:00

Colt1911 [192]3 years ago

4 0

Answer: 11.9%

Step-by-step explanation: