Suzanne and Gavin are taking out installment loans for $1,700 at a stated interest rate...
90.2K
Verified Solution
Link Copied!
Question
Finance
Suzanne and Gavin are taking out installment loans for $1,700 at a stated interest rate of 6%. The term of each loan is five years. Answer the following questions using the repayment information table that follows the questions as necessary. For convenience, the table headings are displayed above the scroll box.
| Suzanne | Gavin |
|---|---|
| Suzannes loan uses simple interest to compute finance charges. | Gavins loan uses the add-on method to compute finance charges. |
| Suzannes monthly payment rounded to the nearest cent is $ . | Gavins total finance charge rounded to the nearest cent is $ . |
Complete the following tables using all interim figures rounded to the nearest cent in your calculations. Enter all figures as positive numbers rounded to the nearest cent. Note that the tables are slightly different to reflect the different methods used for finance charges.
| Suzanne Simple | Gavin Add-On | ||
| Total payments | $
| Principal | $
|
| Principal | $
| Finance charge | $
|
| Finance charge | $
| Total payments | $
|
Who paid more for the same loan?
, whose loan used the method to compute finance charges.
Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan
| Number of Monthly Payments | |||||||
|---|---|---|---|---|---|---|---|
| Rate of Interest | 12 | 24 | 36 | 48 | 60 | 72 | 84 |
| 5 | $85.61 | $43.87 | $29.97 | $23.03 | $18.87 | $16.10 | $14.13 |
| 6 | $86.07 | $44.32 | $30.42 | $23.49 | $19.33 | $16.57 | $14.61 |
| 7 | $86.53 | $44.77 | $30.88 | $23.95 | $19.80 | $17.05 | $15.09 |
| 8 | $86.99 | $45.23 | $31.34 | $24.41 | $20.28 | $17.53 | $15.59 |
| 9 | $87.45 | $45.68 | $31.80 | $24.88 | $20.76 | $18.03 | $16.09 |
| 10 | $87.92 | $46.14 | $32.27 | $25.36 | $21.25 | $18.53 | $16.60 |
| 11 | $88.38 | $46.61 | $32.74 | $25.85 | $21.74 | $19.03 | $17.12 |
| 12 | $88.85 | $47.07 | $33.21 | $26.33 | $22.24 | $19.55 | $17.65 |
| 13 | $89.32 | $47.54 | $33.69 | $26.83 | $22.75 | $20.07 | $18.19 |
| 14 | $89.79 | $48.01 | $34.18 | $27.33 | $23.27 | $20.61 | $18.74 |
| 15 | $90.26 | $48.49 | $34.67 | $27.83 | $23.79 | $21.14 | $19.27 |
| 16 | $90.73 | $48.96 | $35.16 | $28.34 | $24.32 | $21.69 | $19.86 |
| 17 | $91.20 | $49.44 | $35.65 | $28.85 | $24.85 | $22.25 | $20.44 |
| 18 | $91.68 | $49.92 | $36.15 | $29.37 | $25.39 | $22.81 | $21.02 |
| 19 | $92.16 | $50.41 | $36.66 | $29.90 | $25.94 | $23.38 | $21.61 |
| 20 | $92.63 | $50.90 | $37.16 | $30.43 | $26.49 | $23.95 | $22.21 |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.