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Nellie Viner saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no
Nellie Viner 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 $7,890 Down payment $0 Annual percentage rate 12.53% Deferred price $10,651.80 or 60 payments at $177.53 per month Required: a. Calculate the amount financed. b. Calculate the finance charge. Note: Do not round intermediate calculations. Round your answer to the nearest cent. c. Calculate the APR by formula. Note: Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place. d. Calculate the monthly payment by add-on-method. Note: Do not round intermediate calculations. Round your answer to the nearest cent. e. Calculate the monthly payment by formula. Note: Do not round intermediate calculations. Round your answer to the nearest cent
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