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1 April, 06:23

Select the correct answer from each drop-down menu.

Rodrigo applied for a $14,000 loan at an interest rate of 5.4% for 6 years. Use the monthly payment formula to complete the statement.

M =

M = monthly payment

P = principal

r = interest rate

t = number of years

Rodrigo's monthly payment for the loan is, and the total finance charge for the loan is.

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  1. 1 April, 07:36
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    Rodrigo's monthly payment for the loan is $257.44 and the total finance charge for the loan is $4,536

    Step-by-step explanation:

    Given Principal = $14,000,

    r = rate (in %) = 5.4%

    t = time (in years) = 6years

    Simple interest = principal * rate*time/100

    Simple interest = 14000*5.4*6/100

    simple interest = $4,536

    Total finance charge on $14,000 loan at an interest rate of 5.4% for 6 years is $4,536

    Amount charged for 6 years = Principal + Interest

    Amount charged for 6 years = $14,000 + $4,536

    Amount charged for 6 years = $18,536

    Monthly payment = Amount charged for 6years/Total months

    Monthly payment = $18,536/12*6

    Monthly payment = $18,536/72

    Monthly payment ≈ $257.44
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