SOLUTION: 1. when the monthly finance charge is 1 1/4 percent what is the annual rate. do i take the percent amount and x it be 30 for the month 2. if you borrow $3.000 for 24 months t

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Question 33825: 1. when the monthly finance charge is 1 1/4 percent what is the annual rate.
do i take the percent amount and x it be 30 for the month

2. if you borrow $3.000 for 24 months to buy a car and pay $137.50 per month what is the finance charge.

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Multiply the monthly rate by 12 to get the annual rate.
3000/24=$125
You are paying an addition 137.50-125=$12.50 per month.
The rate is 12.50/125= 10%
Cheers,
Stan H.