Question

Solomon is taking out 15,320, 2 year loan with an APR of 3.29%. What will be the finance charge for this loan to the nearest dollar?

Answer 1

First we can calculate the monthly interest so:

$\frac{3.29}{12}=0.27$

So we can calculate the total amount he will pay so:

$\begin{gathered} T=15320(1+3.29)^2 \\ T=15320(4.29)^2 \\ T=15320\cdot18.4 \\ T=281950.8 \\ T\approx281951 \end{gathered}$