27
QuizMultiple Choice

Borrowing Money

Question 27 • 26-27 Ignite Technical Math-Financial Math - MA2007

Sam is paying off his eight-year, $15,360 loan in semiannual installments. The loan has an interest rate of 9.58%, compounded semiannually, and a service charge of $1,294.64. Once the loan has been fully paid off, what percentage of the total finance charge will the service charge be? Round all dollar values to the nearest cent.

Answer
A
5.48%
B
8.43%
C
18.55%
D
15.65%