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Ivenika [448]
3 years ago
9

Gary is taking out a $5,000 loan for 1 year at an APR of 12%. His bank has offered him a loan using the add-on method. Using fir

st the financial calculator method and the add-on method calculate Gary's monthly loan payment. Select one: A. $475.00; $448.94 B. $444.24; $466.67
Business
1 answer:
stealth61 [152]3 years ago
7 0

Answer:

Option A. $475.00; $448.94

Explanation:

The loan = $ 5 000

APR = 12 %

therefore, the monthly loan rate will be:

A = P (1 + \frac{r}{n})^{nt}

solving with the calculator gives: $475.00 and $448.94

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