Use an annual percentage rate table to solve the problem.
-A family purchased a new ski boat for $18,500. The loan agency required a 15% down payment And financed the balance for 36 months with an APR of 6.0%. Determine the total finance charge And monthly payment for the loan.
A) Total finance charge = $3418.62; Monthly payment = $531.77
B) Total finance charge = $1625.97; Monthly payment = $481.97
C) Total finance charge = $1497.02; Monthly payment = $478.39
D) Total finance charge = $2989.60; Monthly payment = $596.93

Question

Quizplus · Accepted Answer

The down payment is 15% of $18,500, which is $2,775. The financed amount is $18,500 - $2,775 = $15,725. Using the APR of 6.0% for 36 months, the monthly payment is approximately $478.39, and the total finance charge is approximately $1497.02.

Use an Annual Percentage Rate Table to Solve the Problem