Question

Suppose that you took out a loan with a principal of $24,680. To pay off the principal and the interest, you made quarterly payments of $1,382 for six years. Furthermore, you paid a service charge of $396. What was your total finance charge?

Answer 1

If you make quarterly payments for 6 years, how many payments is that ?

Answer 2

thats every 3 ,months right?

Answer 3

yes

Answer 4

288

Answer 5

quarterly means 4 times a year (every 3 months, as you said)
if you make 4 payments in one year, how many in 6 years ?

Answer 6

ohh lol 24

Answer 7

yes 24 payments (I am wondering what logic got you to 288... I hope you fix the "bug" in your thinking on that)

if you make 24 payments, and each payment is $1,382
how much money do you pay out all together ?

Answer 8

$33168

Answer 9

plus service charge = 33564

Answer 10

haha lol i did six times four times twelve lol

Answer 11

yeah 33168 plusservice charge

Answer 12

ok. total out is 33564
the finance charge is the amount over the original $24,680

Answer 13

so i add those numbers ?

Answer 14

think about it. If you borrowed 24680 and then paid back 24680 a year later, they did not charge anything (no service charge)
if you borrowed 24680 and paid back 24681 then you paid them back the original plus an extra $1. the extra $1 is the service charge.

what about here?

Answer 15

a.
$396
b.
$8,488
c.
$8,884
d.
$8,292

Answer 16

these are the answer choices

Answer 17

the finance charge is the amount over the original $24,680

Answer 18

thank u cutie !!

Answer 19

$33168-($24680+$396)=$8884

Answer 20

You are considering taking out one of two loans. Loan R has a principal of $17,550, an interest rate of 5.32% (compounded monthly), and a duration of seven years. Loan S has a principal of $15,925, an interest rate of 6.07% (compounded monthly), and a duration of nine years. Assuming that you pay back each in monthly intervals, which loan will have a greater lifetime total, and how much greater will it be? Round all dollar values to the nearest cent.

Answer 21

oh wait.. if phi said total out is $33564 then subtract ($24680+$396=$25076) = $8488

Answer 22

ohh lol thanks

Answer 23

could u help me with the second question

Answer 24

oh and 8488 was wrong

Answer 25

8884 is wrong it seems

Answer 26

8488 is what i get

Answer 27

8884 might be correct

Answer 28

i'm not sure phi seems to confused me

Answer 29

33564-24680=8884

Answer 30

yeah me to lol .. i will try 8884 and let u kno

Answer 31

what about the second one ?? any idea ?

Answer 32

Loan R: $17,550(1+0.0532/12)^12*7=$25,447.84071

Loan S: $15,925(1+0.0607/12)^12*9=$27,462.27

Loan S-Loan R: $27,462.27-$25,447.84071=$2014.43 (amount greater)

So loan S would have a greater amount lifetime total, and be greater by $2014.43.

Answer 33

yes n thank u !! and th 8884 was the right answer for that other question

Answer 34

there's answers?

Answer 35

no it was a test

Answer 36

oh

Answer 37

yeah lol thanks .. im doing personal loans

Answer 38

oh

Answer 39

could u help me ?