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Sherman Jacobs plans to borrow $10,000 and to repay it in 36 monthly installments. This loan...

  1. Sherman Jacobs plans to borrow $10,000 and to repay it in 36 monthly installments. This loan is being made at an annual add-on interest rate of 14 percent.
  1. Calculate the finance charge on this loan, assuming that the only component of the finance charge is interest. Round the answer to the nearest cent.
  2. Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent.
  3. Using a financial calculator, determine the APR on this loan. Round the answer to 2 decimal places.   (1)
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