Do the Math $7-2$

Monthly Payments and Finance Charges

Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of $16$ percent, with a maximum term of four years. The furniture she wishes to purchase costs $$3,800,$ with no down payment required. Using Table $7-2$ or the Garman$/$Forgue companion website, make the following calculations $($round all intermediate calculations to two decimal places$)$:

a$.$ What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent.

b$.$ What are the total finance charges over that four$-$year period? Round your answer to the nearest dollar.

$

c$.$ How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent. $A(n)$ of $ compared to the $4-$year loan.

d$.$ What are the total finance charges over that three$-$year period? Round your answer to the nearest dollar.

$

e$.$ How would the payment change if she could afford a down payment of $$500$ with four years of financing? Round your answer to the nearest cent. $A(n)$ of $ compared to the $$3,800,4-$year loan.

f$.$ What are the total finance charges over that four$-$year period given the $$500$ down payment? Round your answer to the nearest dollar.