Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with monthly payments of $238.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ 1931.68

Intermediate Algebra
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ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Meghan Pease purchased a small sailboat for $8,350. She made a down
payment of $1,700 and financed the balance with monthly payments of
$238.38 for 36 months.
(a) What is the finance charge (in $) on the loan?
2$
1931.68
(b) Use Table 13-1 to find what annual percentage rate was charged on
Meghan's loan. (Round your answer to two decimal places.)
25.9
%
Transcribed Image Text:Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with monthly payments of $238.38 for 36 months. (a) What is the finance charge (in $) on the loan? 2$ 1931.68 (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) 25.9 %
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