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
