Respuesta :
Answer: Option c. $ 611.20 will be correct.
Explanation:
Since, the total amount of finance charge is [tex]A=P\frac{r(1+r)^n}{(1+r)^n-1}[/tex]
Where P is the principle, r is the rate, n is the times of compound interest (monthly or quarterly etc.) .
Here P=$4250 r=13.25%, and n=24.
So according to the formula So, the finance charge= [tex]4250\frac{13.25(1+13.25)^{24}}{(1+13.25)^{24}-1}[/tex] = $ 611.20
The finance charge is $1281.32
Data;
- P = $4,250
- rate = 13.25%
- time = 24 months
- N = 12
- I
Compound Interest
This is the interest compounded on a facility over a given period of time.
To solve this, we have to use the formula
[tex]I = P(1 + \frac{r}{n})^n^t[/tex]
Let's substitute the values and solve
[tex]I = 4250 * (1 + \frac{0.1325}{12})^1^2^*^2\\I = 4250 * (1 + 0.01104)^2^4\\I = 5531.32\\I = 5531.32 - 4250 \\I = 1281.32[/tex]
The finance charge is $1281.32
Learn more on compound interest here;
https://brainly.com/question/2455673
