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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
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 percent, with a maximum term of four years. The furniture she wishes to purchase costs $ with no down payment required. Using the table here Monthly installment payments for a loan.pdf make the following calculations round all intermediate calculations to two decimal places:
What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent. Use rounded answer for later calculations.
$
What are the total finance charges over that fouryear period? Round your answer to the nearest dollar.
$
How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent.
An INCREASEDECREASE select one of $ compared to the year loan.
What are the total finance charges over that threeyear period? Round your answer to the nearest dollar.
$
How would the payment change if she could afford a down payment of $ with four years of financing? Round your answer to the nearest cent.
An INCREASEDECREASE select one of $ compared to the $year loan.
What are the total finance charges over that fouryear period given the $ down payment? Round your answer to the nearest dollar.
$
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