Nick paid off a $15,000 car loan over 3 years with monthly payments of $466.59 each....

Nick paid off a $15,000 car loan over 3 years with monthly payments of $466.59 each. Find the finance charge and the APR.

Solutions

Expert Solution

Now we have to find the finance charged per $100 of the amount financed.

Now Using the following table we get that APR=10.0%. (We choose the most close value to 11.98 in 6 column)

Note: This table varies from edition to edition please check in your book for APR table.

Please do the comment for any doubt or clarification. Thank You!

orchestra answered 11 months ago

Next > < Previous

Related Solutions

3. A loan of $5000 is to be paid off with level payments at the end...

3. A loan of $5000 is to be paid off with level payments at the end of each month at 3% compounded monthly. The amount of interest paid in the 61" payment is $2.24 and the amount of principal repaid in the 42nd payment is $70.31. Find: a) The amount of principal repaid in the 61" payment. b) The size of the level monthly payment. c) The number of months necessary to pay off the loan. d) The amount of...

Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much principle is paid over...

Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much principle is paid over the first 72 months?

A loan of $30,000 is paid off in 36 payments at the end of each month...

A loan of $30,000 is paid off in 36 payments at the end of each month in the following way: Payments of $750 are made at the end of the month for the first 12 months. Payments of $750 + x are made at the end of the month for the second 12 months. Payments of $750 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly...

A car loan is taken for $13,000 to be paid back in 5 years, with monthly...

A car loan is taken for $13,000 to be paid back in 5 years, with monthly payments of $495. What nominal annual interest rate is being charged in this loan? 1) 27.42% 2) 42.26% 3) 39.00% 4) 2.29%

3. The bank states that a new car loan with monthly payments is available for three...

3. The bank states that a new car loan with monthly payments is available for three years at an annual interest rate of 9%. a) What would be the monthly payments on a $23,000 loan? b) What is the effective annual interest rate (express to two decimals)?

XYZ Corp. borrows $300,000 to be paid-off in six years. The loan payments are semiannual with...

XYZ Corp. borrows $300,000 to be paid-off in six years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment? A) 25,750 B) 29,761 C) 30,139 D) 25,500

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If...

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If the annual percentage rate on this mortgage is 4% : What is the monthly payment on this loan? What is the balance of this loan AFTER the 14th payment is made? How much of the 8th payment is allocated to interest? How much of the 19th payment is allocated to principal?

A loan amount of L is amortized over six years with monthly payments (at the end...

A loan amount of L is amortized over six years with monthly payments (at the end of each month) at a nominal interest rate of i(12) compounded monthly. The first payment is 500 and is to be paid one month from the date of the loan. Each subsequent payment will be 1% larger than the prior payment. (a) If i(12) = 9%, find the principal repaid in the 25th payment. (b) If i(12) = 12%, find the amount of loan...

An loan is paid in 3 years with monthly payment starting one month after the loan...

An loan is paid in 3 years with monthly payment starting one month after the loan is made. The payments are 540 each in the first year, and 900 per month in the second year, and 700 each in the last year. Interest is at a nominal rate of 7.8 percent convertible monthly. What is the outstanding balance after the 15th payment. Keep 4 decimal places only.

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest on the loan is j12=12%. The principal repaid in the 25th payment is $206.41.What is the size of the loan?

Subjects