Timothy Lawrence plans to borrow $5,000 and to repay it in 36 monthly installments. This loan is being made at an annual add-on interest rate of 11.5 percent. Calculate the finance charge on this loan, assuming that the only component of the finance charge is interest. Round the answer to the nearest cent. $ Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent. $ per month Using a financial calculator, determine the APR on this loan. Round the answer to 2 decimal places. %
Timothy Lawrence plans to borrow $5,000 and to repay it in 36 monthly installments. This loan is being made at an annual add-on interest rate of 11.5 percent. Calculate the finance charge on this loan, assuming that the only component of the finance charge is interest. Round the answer to the nearest cent. $ Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent. $ per month Using a financial calculator, determine the APR on this loan. Round the answer to 2 decimal places. %
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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Timothy Lawrence plans to borrow $5,000 and to repay it in 36 monthly installments. This loan is being made at an annual add-on interest rate of 11.5 percent.
-
Calculate the finance charge on this loan, assuming that the only component of the finance charge is interest. Round the answer to the nearest cent.
$
-
Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent.
$ per month
-
Using a financial calculator, determine the APR on this loan. Round the answer to 2 decimal places.
%
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