Monthly Payments and Finance Charges or an Add-on Rate Loan Zachary Porter of Abilene, Texas,...
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Monthly Payments and Finance Charges or an Add-on Rate Loan
Zachary Porter of Abilene, Texas, is contemplating borrowing $10,500 from his bank. The bank could use add-on rates of 7.0percent for 3 years, 7.8percent for 4years, and 8.6percent for 5 years. Use the following equation to calculate the finance charge and monthly payment for these three options. Round your answers to the nearest cent.
For the 7.0 percent loan the finance charge would be $ . For the 7.0 percent loan the monthly payment would be $ . For the 7.8 percent loan the finance charge would be $ . For the 7.8 percent loan the monthly payment would be $ . For the 8.6 percent loan the finance charge would be $ . For the 8.6 percent loan the monthly payment would be $ .
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