Browse the Topics, Table of Contents, and Index
Follow us:
Twitter Facebook

6.1 Introduction to Lending

6.1 Introduction to Lending
<
>
  • Math Help

    How was the finance charge calculated in Example 4? First, the monthly payment, $65.08, was calculated (see Section 6.2). The monthly payment M for an installment loan with a principal of P taken out for n months at an annual percentage rate of r (in decimal form) is

    Using P = $1438.95, r = 8% = 0.08, and n = 24, the monthly payment is

    Next, the monthly payment and the number of payments were used to find the total amount due.

    Then the amount financed was subtracted from the total amount due to determine the finance charge.

  • Consumer Suggestion

    To compare credit terms on various credit cards and find the right credit card for you, visit CompareCards.com.

  • Checkpoint Solution

    The completed disclosure is shown below.

  • Comments (1)

    These comments are not screened before publication. Constructive debate about the information on this page is welcome, but personal attacks are not. Please do not post comments that are commercial in nature or that violate copyright. Comments that we regard as obscene, defamatory, or intended to incite violence will be removed. If you find a comment offensive, you may flag it.
    When posting a comment, you agree to our Terms of Use.

      ______     ___     __   __    ______   __   __  
     /_   _//   / _ \\   \ \\/ //  /_   _//  \ \\/ // 
       | ||    / //\ \\   \   //    -| ||-    \   //  
      _| ||   |  ___  ||  / . \\    _| ||_    / . \\  
     /__//    |_||  |_|| /_//\_\\  /_____//  /_//\_\\ 
     `--`     `-`   `-`  `-`  --`  `-----`   `-`  --` 
                                                      
    
    Showing 1 comments
    Subscribe by RSS
    system user
    Ron Larson (author)6 years ago |
    When buying appliances, some people focus only on the cost and the type of credit available. Try to also focus on quality. For a comparison of the reliability of different brands, you can check Consumer Reports at ConsumerReports.org.
    0
©Larson Texts, Inc. All Rights Reserved.