Question

What is the finance charge on 13,300 financed at 7.9 percent for 4 years if the monthly payment per 100 is 2.74?

1.) 13,300
2.) 4,192.16
3.) 1,457.68
4.) 17,492.16

Answer 1

17,492.16

Explanation:

Answer 2

To answer this question we have to first determine how many times 100 can go into 13,300. To find this we do the following:

$13,300/$100 = 133

Now we simply multiply the result by $2.74:

$2.74*133 = $364.42.

Finally we just multiply that by the total number of payments which are (monthly payment, 12 months in a year, for 4 years).

$364.42*(12*4) ---> $364.42*48 = $17,492.16.

The correct answer is choice 4.) 17,492.16

I hope this helps, Regards.