What is the finance charge on the loan

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Question -

1. Jeff wishes to accumulate $6,250 in 7 years. Use the appropriate formula to find the sinking fund payment she would need to make at the end of each year, at 7% interest, compounded annually.

2. Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $236.38 for 36 months.

(a) What is the finance charge (in $) on the loan?

(b) Find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %

3. Ransford and Alda Mariano own a home recently appraised for $426,500. The balance on their existing mortgage is $113,085. If their bank is willing to loan up to 80% of the appraised value, what is the amount of credit available to them (in $)?

Reference no: EM132971952

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