The Delgados obtained an installment loan of $16,000. The loan had an APR of 10% and they agreed to repay the loan in 18 months. What is the finance charge of the loan?
Use the following table:
8.79
MONTHLY PAYMENT ON A $100 LOAN
Term in
Annual Percentage Rate
Months 10% 12% 15% 18%
6 $17.16 $17.25 $17.40 $17.55
12
8.88
9.03
9.17
18
6.01
6.10 6.24 6.38
24
4.61 4.71 4.85 4.99
30
3.78 3.87 4.02 4.16
36
3.23 3.32 3.47 3.62
42
2.93
3.07 3.23
48
2.54 2.63 2.78 2.94
2.83
O $1,308.80. O $961. O $1,289.40. O $1,123.70