You wish to finance the purchase of a boat home for \( \$ 38,600 \). A finance company offers an APR of \( 10 \% \) on a 24-month installment loan. After first using Table 13-1 to find the finance charge, calculate the monthly payment. Select one: O. \( \$ 1,781.23 \) O b. \( \$ 1,619.08 \) oc. \( \$ 1,769.17 \) o d. \( \$ 1,608.33 \)
Solución de inteligencia artificial de Upstudy
Responder
Solución

¡Inicia sesión para desbloquear respuestas gratis!
Una plataforma de aprendizaje en la que confían millones de estudiantes y profesores reales.

Respondido por UpStudy AI y revisado por un tutor profesional
Bonus Knowledge
To calculate the monthly payment, first determine the finance charge using the APR of \( 10\% \) over 24 months. If you looked up the finance charge in Table 13-1 and found it to be, say \( \$2,200 \) for example. You would then add this finance charge to the principal amount of \( \$38,600 \), resulting in a total loan amount of \( \$40,800 \). Dividing this by the number of months (24), the monthly payment would be approximately \( \$1,700 \), and you'd want to find the closest option. Now, if you were to calculate the actual finance charge based on the specific APR, typically you would use the formula for calculating the payment on an installment loan. This includes breaking down the total loan amount, finance charge, and loan term, mixing some math into your financial adventure!
