Maths
posted by Marty on .
In order to make some home improvements, a home owner spent $40,000. He paid 20% as a down payment and financed the balance of the purchase with a 36month fixed installment loan with an APR of 7.5%. Determine the home ownerâ€™s a) total finance charge and b) monthly payment..
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.

the 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 
the 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 
sorry, I meant to type 11.98*32000/100 = 3833.60
I think I was thinking of my own calculation. 
Thanks