ou borrow 8000 at an annual interest rate of 6 to be repaid

ou borrow $8000 at an annual interest rate of 6% to be repaid in 4 equal annual installments. Your annual payment will be approximately equal a 2208.73 O b.2000 OC:2120 O d- none of the above QUESTION 15 otal finance charge will be equal to You borrow $8000 at an annual interest rate of 6% to be repaid in 4 equal annual installments. Your t approximately O a 480 Ob. 1920 O c-1235 Od. Not enough information is given to answer the question QUESTION 16 SAVE AND SUBMIT

Solution

14)

Principal = 8000@6% annually, to paid in four equal annual installments

annual payment = principal + Interest

= (8000)/4 + (8000*6%)

= 2000 + 480

= 2480

Answer: D) None of the above

= 2120

15)

finance charge per year = 8000*6% = 480

total finance charge for 4 years = 480*4 = 1920

Answer: B)1920