Installment loans calculations

Business & Finance
Tutor: None Selected Time limit: 1 Day

Calculate the finance charge on a home equity loan based on an average daily balance of $97,552 during a 30-day billing period.  The lender charges 5.75% interest and calculates interest based on a daily periodic rate.  Assume a 365-day year and round the daily periodic rate to 8 decimal places.

Apr 28th, 2015

Daily rate = 0.0575/365 =. 0.000157534

So interest for 30 days =. 30 x 97552 x 0.000157534. =. $ 461.03

Answer:  $ 461.03

Apr 28th, 2015

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Apr 28th, 2015
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Apr 28th, 2015
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