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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.

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