Answer:
The finance charge for this loan of Solomon is $1008 approximately.
Solution:
Given, Solomon is taking out 15,320, 2 year loan with an APR of 3.29%.
We have to find What will be the finance charge for this loan.
Now, yearly interest on amount of $15320 = 3.29% of 15320
Yearly interest on amount of $15320 [tex]=\frac{3.29}{100} \times 15320[/tex]
Yearly interest on amount of $15320 = 0.329 x 1532
Yearly interest on amount of $15320 = 504.028
So, for 2 years, his interest will be 2 x 504.028 = 1008.056
Hence, finance charge for this loan is $1008 approximately.
