Given:
a) Amount Financed = Selling Price – Down Payment
=$7810 - $0
= 7810
b) Finance Charge = Deferred Price – Amount Financed
= 11396.4 - 7810
= 3586.4 = 3586
c) 60 monthly patments i.e. 5 years
So 5 year rate = Finance charge / Loan amount x 100 = (11396.4 - 7810)/7810 *100
= 3586.4/7810 *100
= 45.92%
APR
d)
Monthly payment = (Finance charges + amount financed)/60
= 3586 +7810 /60
= 189.94
e) As down payment is zero ,the monthly payment cannot be found by table lookup
CNot secure ezto.mheducation.com/hm.tpx pps Dell Other bookmarks Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had...
Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash price $7,820 Down payment $0 Annual percentage rate 15.28% Deferred price $11,284.20 or 60 payments at $188.07 per month a. Calculate the amount financed. b. Calculate the finance charge. (Round your answer to the nearest cent.)