Question: Joseph Key's request for a four-year automobile loan for $27,000 has been approved. Reston Center Bank will require equal monthly installment payments for 48 months. The bank tells Joseph that he must pay a total of $3,817 in finance charges. What is the loan's APR?
Kyle Bender has asked for a 30-year mortgage to purchase a home on Long Island. The purchase price is $465,000, of which Bender must borrow $375,000 to be repaid in monthly installments. If Kyle can get this loan for an APR of 7.75 percent, how much in total finance charges must he pay?