Question

Solomon is taking out 15,320, 2 year loan with an APR of 3.29%. What will be the finance charge for this loan

Answer 1

Answer:

The finance charge for this loan of Solomon is $1008 approximately.

Solution:

Given, Solomon is taking out 15,320, 2 year loan with an APR of 3.29%.

We have to find What will be the finance charge for this loan.

Now, yearly interest on amount of $15320 = 3.29% of 15320

Yearly interest on amount of $15320 $=\frac{3.29}{100} \times 15320$

Yearly interest on amount of $15320 = 0.329 x 1532

Yearly interest on amount of $15320 = 504.028

So, for 2 years, his interest will be 2 x 504.028 = 1008.056

Hence, finance charge for this loan is $1008 approximately.