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Suppose that you took out a loan with a principal of $24,680. To pay off the principal and the interest, you made quarterly payments of $1,382 for six years. Furthermore, you paid a service charge of $396. What was your total finance charge?


a.

$396

b.

$8,488

c.

$8,884

d.

$8,292

Verified Answer :

The solution to the problem is as follows:

$1382*24 (4 payments per year * 6 years)=$33,168+$396=$33,564 (Total)


$33,564-$24,680=$8,884
 
Therefore the total finance charge is c.$8,884.

I hope my answer has come to your help. God bless and have a nice day ahead!

Answer:

finance charge is c.$8,884.

Explanation:

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