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October 20, 2014

October 20, 2014

Posted by **Marty** on Thursday, March 6, 2008 at 11:33am.

Use this partial APR table for finance charge per $100

Payments

Number Annual percentage rate

ofPmts 7.00% 7.50% 8.00% 8.50%

24 7.45 8.00 8.54 9.09

30 9.30 9.98 10.66 11.35

36 11.16 11.98 12.81 13.64

Each entry in the table represents finance charge/$100 at the given terms.

- Maths -
**Reiny**, Thursday, March 6, 2008 at 12:55pmthe monthly rate i is .075/12 = .00625

He finances 32,000 dollars, so

32000 = paym[1 - 1.00625^(-36)]/.00625

this gave me a payment of $995.40

his total interest charge is 32000 - 36*995.40

= $3834.36

If I use your chart, the interest charge would be 11.96*36 = $3833.60 a difference of 76 cents.

I was using the accepted compound interest formula

Present value = paym(1 - (1+i)^-n)/i

- Maths -
**Marty**, Thursday, March 6, 2008 at 2:01pmthe interest charge would be 11.96*36 = $3833.60 a difference of 76 cents

Hi how did you get the 3833.6 from multiplying 11.96*36.

Thanks

- Maths -
**Reiny**, Thursday, March 6, 2008 at 2:37pmsorry, I meant to type 11.98*32000/100 = 3833.60

I think I was thinking of my own calculation.

- Maths -

- Maths -
- Maths -
**Marty**, Thursday, March 6, 2008 at 3:25pmThanks

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