Problem #2. Your neighbor purchased a sailboat for $9,810. He made a downpayment of $2,000 and financed the balance with monthly payments of $380 for 24 months. Show your work for all parts of the problem. (a) What is the finance charge on the loan? (b) Use the APR formula to find what annual percentage rate is being charged on the loan.

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ISBN:9780470458365
Author:Erwin Kreyszig
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**Problem #2.** Your neighbor purchased a sailboat for $9,810. He made a downpayment of $2,000 and financed the balance with monthly payments of $380 for 24 months. [*Show your work for all parts of the problem.*]

(a) What is the finance charge on the loan?

(b) Use the APR formula to find what annual percentage rate is being charged on the loan.
Transcribed Image Text:**Problem #2.** Your neighbor purchased a sailboat for $9,810. He made a downpayment of $2,000 and financed the balance with monthly payments of $380 for 24 months. [*Show your work for all parts of the problem.*] (a) What is the finance charge on the loan? (b) Use the APR formula to find what annual percentage rate is being charged on the loan.
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