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 $7,880 Down payment $0 Annual Percentage Rate 14.53% Deferred price $11,131.80 or 60 payments at $185.53 per month

a. Calculate the amount financed.

Amount financed $

b. Calculate the finance charge. (Round your answer to the nearest cent.)

Finance change $

c. Calculate the APR by table lookup. (Use Table 14.1(b)) (Round your answers to 2 decimal places.)

APR: between % and %

d. Calculate the monthly payment by formula. (Round your answer to the nearest cent.)

Monthly payment by formula $

e. Calculate the monthly payment by table lookup at 14.50%. (Use Table 14.2) (Round your answer to the nearest cent.)

Monthly payment by table lookup $