Question

Calculate the finance charge and the monthly payment on a $20,000 add-on installment loan with an interest rate of 9% and a term of 5 years.

Answer 1

Answer: 9006.16

Explanation:

In general, the length of billing cycle is at least 15 days and no longer than 90 days.

The finance charge for a billing cycle is $9,006.16.

The new opening balance in the following billing cycle is $29,006.16.