Question

A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $34,000, the interest for the year will be $5,780. Because you must repay a total of $39,780 in one year, the finance company requires you to pay $39,780/12, or $3,315.00, per month over the next 12 months.

Answer 1

Answer:

Company quotes an interest rate 17 percent on one-year loans.

Explanation:

Borrow value=$34000

interest rate of company in one year=17 percent

Total interest in a year =$34000×$\frac{17}{100}$

total interest=$5780

Total payment in one year=$34000+$5780

Total payment=$39780

You will pay $39780/12 or $3315.00/month according to company statement.