Grisha needs to borrow $17001700 for an automobile repair. She finds that Bank A charges 4.24.2% simple interest on the amount borrowed for the duration of the loan and requires the loan to be repaid in six equal monthly payments. Bank B offers loans of $17001700 to be repaid in 12 monthly payments of $146.34146.34. Answer parts (a) through (d). Number of Payments Annual Percentage Rate 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% (Finance charge per $100 of amount financed) 6 1.46 1.61 1.76 1.90 2.05 2.20 2.35 2.49 2.64 12 2.73 3.00 3.28 3.56 3.83 4.11 4.39 4.66 4.94 Question content area bottom Part 1 a) How much interest is charged by Bank A? Bank A charges $35.7035.70 in interest. (Type an integer or a decimal.) Part 2 b) How much interest is charged by Bank B? Bank B charges $56.0856.08 in interest. (Type an integer or a decimal.) Part 3 c) What is the APR, to the nearest half percent, on the Bank A loan? The APR is enter your response here%. (Type an integer or a decimal.)
Grisha needs to borrow $17001700 for an automobile repair. She finds that Bank A charges 4.24.2% simple interest on the amount borrowed for the duration of the loan and requires the loan to be repaid in six equal monthly payments. Bank B offers loans of $17001700 to be repaid in 12 monthly payments of $146.34146.34. Answer parts (a) through (d). Number of Payments Annual Percentage Rate 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% (Finance charge per $100 of amount financed) 6 1.46 1.61 1.76 1.90 2.05 2.20 2.35 2.49 2.64 12 2.73 3.00 3.28 3.56 3.83 4.11 4.39 4.66 4.94 Question content area bottom Part 1 a) How much interest is charged by Bank A? Bank A charges $35.7035.70 in interest. (Type an integer or a decimal.) Part 2 b) How much interest is charged by Bank B? Bank B charges $56.0856.08 in interest. (Type an integer or a decimal.) Part 3 c) What is the APR, to the nearest half percent, on the Bank A loan? The APR is enter your response here%. (Type an integer or a decimal.)
Chapter1: Equations, Inequalities, And Mathematical Modeling
Section1.3: Modeling With Linear Equations
Problem 3ECP: Your family has annual loan payments equal to 28 of its annual income. During theyear, the loan...
Related questions
Question
Grisha needs to borrow
$17001700
for an automobile repair. She finds that Bank A charges
4.24.2%
simple interest on the amount borrowed for the duration of the loan and requires the loan to be repaid in six equal monthly payments. Bank B offers loans of
$17001700
to be repaid in 12 monthly payments of
$146.34146.34.
Answer parts (a) through (d).|
Number
of
Payments
|
Annual Percentage Rate
|
||||||||
|---|---|---|---|---|---|---|---|---|---|
|
5.0%
|
5.5%
|
6.0%
|
6.5%
|
7.0%
|
7.5%
|
8.0%
|
8.5%
|
9.0%
|
|
|
(Finance charge per $100 of amount financed)
|
|||||||||
|
6
|
1.46
|
1.61
|
1.76
|
1.90
|
2.05
|
2.20
|
2.35
|
2.49
|
2.64
|
|
12
|
2.73
|
3.00
|
3.28
|
3.56
|
3.83
|
4.11
|
4.39
|
4.66
|
4.94
|
Question content area bottom
Part 1
a) How much interest is charged by Bank A?
Bank A charges
$35.7035.70
in interest.(Type an integer or a decimal.)
Part 2
b) How much interest is charged by Bank B?
Bank B charges
$56.0856.08
in interest.(Type an integer or a decimal.)
Part 3
c) What is the APR, to the nearest half percent, on the Bank A loan?
The APR is
enter your response here%.
(Type an integer or a decimal.)
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