math
A bank offers a 24month installment loan with an APR of 10%. Alicia wishes to use the loan to finance a sailplane for $42,800. After first using Table 131 to find the finance charge, calculate the monthly payment.

What is the finance charge?
posted by Ms. Sue

Working this without archaic tables, instead using modern technology .... (a basic scientific calculator)
i = .10/12 = .0083333...
n = 24
42800 = paym(1  1.0083333...^24)/.0083333...
paym = 1975.00
using your tables:
42800/100 = 428
charge per 100 for 24 months = 10.75
so total interest charge = 10.75(428) = 4601
amount repayable = 42800+4601= 47401
divided into 24 payments 47401/24 = 1975.04
compare with proper answer above.posted by Reiny

(amount financed + finance charge)/#months of loan, same answer! thank you so much,.
posted by Ricky
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