You buy items costing $
2300
and finance the cost with a fixed installment loan for
24
months at
5
% simple interest per year.
a.
What is the
finance charge?
b.
What
is
your monthly payment
a) finance charge= "\\frac{PRT}{100}=\\frac{2300\\times 5\\times 24\/12}{100}=\\$230" (for 24months)
b) monthly payment "=\\frac{2300}{24months}+\\frac{230}{24months}=95.83+9.583=\\$105.413"
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