Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with monthly payments of $237.38 for 36 months.(a) What is the finance charge (in $) on the loan?$(b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.)%4

Cost of sailboat = $8,350Down payment = $1,700Monthly payment = $237.38Number of period = 36 monthsThe finance charge on the loan = $1,895.68.The annual percentage rate charged on loan = 17.09%

Answered: Meghan Pease purchased a small sailboat…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Dave took out a $5800 loan at 11% and eventually repaid $7714 (principal and interest). What was the time period of the loan? The time period of the loan was year(s). (Type an integer or a decimal.)
Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with monthly payments of $239.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %
Mary Smith took a car loan of $25,000 to pay back in 72 monthly installments at an interest rate of 12%. Compute the loan balance immediately after the 48th payment. $18,560 $8,132 $10,383 $12,500
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Q2.6: Anika received a loan of $9,000 at 4.72% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 5 years to settle the loan. a. Calculate the size of his payments. b. What was the total interest paid during the period? c. What was the interest portion of payment number 3? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
Laura borrowed a total of $18000 from two different banks. one bank charged 6% simple interest and the other 7.5% simple interest. If the total interest after 2 years was $2,220 determine the amount borrowed by both banks. let x represent the principal of the loan business loan 6% then what is the remaining amount borrowed at 7.5%?
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Lisa took out a loan for $10,500 and was charged simple interest at an annual rate of 8.8%. The total interest she paid on the loan was $462. How long was the loan for, in months? Do not round any intermediate computations. If necessary, refer to the list of financial formulas. 0 months Explanation 52°F Partly sunny Check X 3 T a Ⓒ2022 McGraw Hill LLC. All Rights Reserved. T 27 W X 49

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