Final answer:
The finance charge on a $15,320, 2-year loan with an APR of 3.29% is calculated using the formula Finance Charge = Principal × Rate × Time, which results in a finance charge of $1,007.30.
Step-by-step explanation:
The question is about calculating the finance charge on a loan with an Annual Percentage Rate (APR). Solomon is taking out a $15,320 loan for 2 years with an APR of 3.29%. To calculate the total finance charge for a simple interest loan, you can use the formula: Finance Charge = Principal × Rate × Time.
For Solomon's loan, the calculation would be:
Finance Charge = $15,320 × 0.0329 × 2
Plugging in the values:
Finance Charge = $15,320 × 0.0329 × 2 = $1,007.30
Therefore, the finance charge for the loan is $1,007.30. Note that this calculation assumes that it is a simple interest loan and does not account for any additional fees or compound interest that might apply.