SkyHigh Aircraft Sales uses the Midway Bank to finance customer aircraft purchases. This month, Midway is offering 60-month installment loans with an APR of 11.25%. A 15% down payment is required. The president of Radiance Industries wants to finance the purchase of a company airplane for $250,000.
a. Use the APR tables to calculate the amount of the finance charge.
b. How much are the monthly payments on Radiance’s aircraft loan?
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