Solomon is taking out a 5,320 two year loan with an APR of 10.25%. What will the finance charge be for this loan to the nearest dollar?

We know that APR means Annual Percentage Rate, so in one year we should pay that rate for the loan amount: $5,320 * 10.25 % = $5,320 * 10.25/100 = $545.30 per year Due that Solomon took the loan for 2 years, the finance charge will be: $545.30 * 2 year = $1,090.60 Rounded to the nearest dollar is: $1,091 That means after two year Solomon will have returned the loan plus the charge: $5,320 + $1091 = $6,411