A finance company is using the following Money by Mail offer. Calculate the yearly nominal IRR received
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A finance company is using the following "Money by Mail" offer. Calculate the yearly nominal IRR received by the company if a customer chooses the loan of $2000 and accepts the credit insurance (Life and Dis.)
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INE 1/96 Non-Negotiabie To borrow $3000 $2000, or $1000 For the Amount of $3000 or $2000 or $1000 Pay to the Order of I Feel Rich Limited Time Offer Dollars For the Amount of S3000 Dollars Pay to the Order of Total of Payments $4,28040 Number of Monthly Payments APR 18.95% Finance Charge S1034.29 I Feel Riclh Monthiy Payment18.90 S3000 loan terons Credit Line Premium 36 Months $83.46 Armount Financed $3,246.25 Credit Disabilit Premium $162.65* For the Amount of $2000 Dollars Pay to the Order or Total of Paymens S2,731.50 Number of Monly Payrments APR 19.95% Finance Charge $594.25 I Feel Rich Monthly Payment S91.05 $2000 łoan terms Credit Line Premium $44.38* Credit Disabilit Fremiu 30 Months Amount Financed $2,137.25 $92.87* APR 20.95% Finance Charge $245.54 For the Amount of $1000 Dollars Pay to the Order of Total of Paymens $1,300.80 Number of Monthly Payments I Feel Rich Monthly Payment $54.20 $1000 loan terms Credit Line Premium $16.91 Credit Disabilit Pre 24 Months Amount Financed S1055.26 $39.02
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