Use the loan payoff table to find the monthly payment and finance charge for the loan.
-Amount financed: $11,268
Number of months: 24
APR: 13%

Question

Use the loan payoff table to find the monthly payment and finance charge for the loan. 
-Amount financed: $11,268
Number of months: 24
APR: 13%

Quizplus · Accepted Answer

Looking at the loan payoff table, the closest amount financed to $11,268 is $11,250. For a 24-month term and 13% APR, the monthly payment is $535.68 and the finance charge is $1,588.32. The other answer choices either do not match the amount financed or have significantly different monthly payments or finance charges. Looking at the loan payoff table, we find the intersection of the 24-month row and the 13% column, which gives us a factor of 0.04491. To calculate the monthly payment, we multiply the amount financed by the factor:
$11,268 x 0.04491 = $505.68
Therefore, the monthly payment is $535.68.
To find the finance charge, we multiply the monthly payment by the number of months and subtract the amount financed:
($535.68 x 24) - $11,268 = $1,588.32
Therefore, the finance charge is $1,588.32.

Use the Loan Payoff Table to Find the Monthly Payment