Question
Brenda Callaway wants to borrow to purchase some new appliances. The bank offered her a $1.000 loan at 8% simple interest and an upfront service
Brenda Callaway wants to borrow to purchase some new appliances. The bank offered her a $1.000 loan at 8% simple interest and an upfront service charge of $35. If she Is required to pay the entire loan at the end of one year, calculate the following:
A. Total Finance Charge:
B. Total Payment:
C. Annual Percentage Rate:
(Round to the nearest hundredth)
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
A Total Finance Charge Simple interest is calculated using the following formula Simple Interest Pri...
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
