Use an Annual Percentage Rate Table to Solve the Problem

Multiple Choice

Use an annual percentage rate table to solve the problem.

-In order to make some home improvements, a home owner spent $20,000. He paid 15% as a down Payment and financed the balance of the purchase with a 36-month fixed installment loan with an APR of 4.5%. Determine the home ownerʹs total finance charge and monthly payment.

A) Total finance charge = $1006.40; Monthly payment = $500.18
B) Total finance charge = $1205.30; Monthly payment = $505.70
C) Total finance charge = $2562.00; Monthly payment = $626.72
D) Total finance charge = $2920.60; Monthly payment = $553.35