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 $7,930 Down payment $0 Annual percentage rate 14.78% Deferred price $11,305.20 or 60 payments at $188.42 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 and 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 15.00%. (Use Table 14.2) (Round your answer to the nearest cent.) Monthly payment by table lookup $

TABLE 14.1 Annual percentage rate table per $100 HUMBER AMNUAL PERCENTAGE RATE PATH ENTS110,00t 10.251 10. ,et 10. 75t 11.001 11.251 11.50t 11.75 t 12,00 t 12.25t 12.501 nost 13.cot 13.751 13.30 MTt IFINANCE CHARGE PER 100 OF ANDUNT FINANCEDI 0.83 0.85 0.67 0. 90 0.92 0.94 0.96 .98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.15 1.25 .28 1.31 1.35 1.36 1.41 1.44 .47 1.50 1.53 1.57 1.&J 1.63 1.66 1.69 1.72 1.67 1* 71 1.76 1.80 1.84 1.88 1.92 i-96 2.01 2.05 2.09 2L3 2.17 2.22 2.26 2.30 2.09 2.1 2.20 2.25 2.30 2.35 2. 2.4 2.51 2.57 2.62 2.t 2.72 2.78 2.83 2.88 2.5 2.58 2.642.70 2.77 2.83 2.89 .96 3.0 3.08 3.15 3.2 3.27 3.34 3.40 .46 2.94 3.0 .08 3.16 3.23 3.31 3-38 3.5 3.53 3.60 3.68 3.75 3.83 3.90 .9.05 3-36 3.45 3.53 3.62 3+70 3.78 3.87 3.95 4.04 4.12 4.21 29 4. 38 4.47 4.55 4.64 3.79 3.88 3.98 4.07 4.1 4.26 4.36 46 .55 .65 4.74 .. 5.03 5.13 .22 4.21 4. 32 4.43 4. 53 4.64 4.75 4.85 .96 5.07 5. 17 5.28 539 5.49 5.60 5.71 5.82 4.64 4. 76 4.88 4. 99 5.11 5.23 5.35 5.46 5.58 5.70 5.82 5. 6.05 6.17 6.29 6.41 10 5.07 5. 20 5.33 5.45 5.58 5.71 5.84 9.97 6.10 6.23 6.36 6.42 6.62 6.75 6.88 T.01 5.50 5.00 5.78 5. 92 6.06 6.20 6.3448 6.62 6.76 6.90 7.0+ T. 1 8 7. 32 1.46 7.60 5.93 6.08 6.23 6.38 6. 53 6.68 6.84 6.99 1.14 7.29 7.44 7.59 7. 75 7.90 .05 8.20 6-366-52 .69 6.85 7.0L T.17 7.34 6.80 6.97 1.14 1. 32 7.49 7.66 7,34 .01 8.19 8.36 8.53 8. 71 8.88 9.06 9.23 9.41 12 13 5 T.66 7.82 7.99 .15 8.31 8.48 B.64 8.8 15 7.23 7.41 1.60 7.78 7.97 8. 15 8.34 .53 8.71 8.90 9.08 .2, 9.46 9.64 .83 10.02 7.67 7, 8.06 .25 8,45 8.65 8+84 9.04 9.24 4.44 9.63 9.85 10.03 10.7310.43 10.63 17 .13 8.93 9.14 9.35 *56 9.77 9.98 10.19 10.40 10.6 .20 9,42 9.64 9,861.. 10.3010.52 10.74 10.9% 10.82 11.03 11.24 8.54 76 8.98 8.98 .21 9.44 9.67 9.90 10.13 10.37 14.60 10.83 11.06 11.30 11.53 11.76 12.00 12.23 12.46 20 21 9.42 .6b 9,90 10. 15 10-39 10. 63 10.88 11.12 11.3-b 11.61 11.85 2 9.86 10. 12 10.37 10.62 10.8 11-13 11.39 1:+6 11.90 12.16 12.41 12-6T 12.93 13.19 13.44 13.70 10.30 10.57 10.84 11.10 11.37 11.63 11.90 12.17 12.44 12.71 12.7 13. 2. 13.51 13.78 14.05 14.32 10.75 11.02 1.30 11.58 11.86 12.14 12.42 12.70 12.98 13.26 13.54 13.P 14.10 14.38 14.66 14.95 .19 11.48.77 12.06 12.35 12.64 12.9311.22 13.52 3.81 14.10 14.40 14.69 14-98 15.28 15. .10 12.34 12.50 12.84 13.08 L.64 11.9 12.24 L2.54 12.15 13.15 13.45 13.75 14.06 14.36 14.67 14.9 15.28 15.9 13.89 1.20 12.09 12.40 12.11 13.03 13. 34 13.66 13.97 16.29 14,60 14.92 15.24 5.56 15.67 16.19 16.51 16.83 12.53 12.8 13-18 13.51 13.84 14.16 14.49 1+.67 5.15 15.48 15.,1 16. 14 16.47 16.80 17.13 17.46 12.98 13.32 13.66 4.00 14. 33 1+-67 15.01 15.35 15.70 16.04 16.38 16. 72 17.07 17.41 17.75 1F.10 1-43 13.18 14.13 14.48 14.83 15.19 15.5 15.89 16.24 16.60 16.95 LT.3 17.66 14.02 18.38 1.T 28 13.9 14.25 1. 14.97 15.33 15.TO 16.06 1.43 16.79 17.16 17.53 17.90 18.27 1-63 19.00 19.38 14-34 1. 15.09 15.46 15.84 16.21 16.59 e.97 17.35 17.73 18. 18.49 18.87 19.25 19.63 20.02 14.79 15.18 1S-57 15.-95 16.34 16.73 17.12 1.51 17.90 18.29 18-55 19.08 19-47 19-87 20-26 20.56 15.25 5.45 16.05 lb. 44 16.85 17.25 17,65 11.05 .46 14.86 19.21 9.6/ 20.08 20.49 20.90 21.31 15.70 16. 11 16.53 16. 94 17. 35 17.77 16.114.60 19.01 8.41 19.20.220.69 21,11 21.53 21.95 16-62 17.06 17-49 17 1 93 18.37 18.81 19.25 19.9 20.13 20.58 21.07 21.21.91 72.36 72.81 23.25 17.08 17. 53 17.98 18. 43 18.88 19.)3 19.7 20.2+ 20.69 2t"15 21.61 22.07 22.52 22.99 23.45 ,23.91 17.54 18.00 18.46 18.93 . 39 19.86 20.32 2.79 21.26 21.73 22.20 27.6 23.24 23.61 24.09 24.56 18.00 18.48 18.95 19-43 19.90 20.38 20.86 21.34 21.82 22.30 22. 21.2T 23.T6 24.25 4-73 25.22 38 39 19.93 20.42 20.91 21.40 21.89 22.39 22.8 23.3e 23. 88 24.3a 24. 88 ?53A 25.8 18-47 18-95 19-44 18.93 19. 43 19.93 20. 43 20. 93 21.44 21.94 21.45 22.96 23.+7 Z3.98 24. 25.00 25.51 26.01 26.55 19.40 19.9 20.4 20. 21.45 21.97 22.49 2.0 23.53 24.05 24.57 2S.10 25.62 76.15 26.6R 27.21 1 21.97 22.59 23.03 21.57 24.10 24.66 25.17 25" 7 26.25 26 27.33 27.88 19.86 20.39 20.91 21.44 20.33 20.87 21.41 L.95 22.49 23-03 23.58 24.12 24.67 25.22 25.7T 26.32 26.8 2T.43 27.99 28.55 46 | 20.80 21.35 21.90 22.46 23.01 23.57 24" 1 3 24.69 25.25 25. 76.37 26.9% 27,51 28.08 8.55 29.22 21 27 21.83 22.40 22.97 23.53 24.10 24.68 2.25 25.82 2640 26.98 27.56 28.15 28. 12 29.3 9.89 21.74 22.32 22.90 23. 48 24. 06 24.64 25+23. 21.81 26.40 26.99 1.se 2A. 24.17 29. 37 29.97 30.57 58 2.16 25.74 2e.38 26.98 7"59 " 24.80 29.41 30.02 30.63 31.24 49 | 22.21 22.AQ 23.39 23. 99 24. 50 22.69 23.29 23.89 24.50 25.11 25.72 76.33 2t.95 27.56 28.18 78.0 29.62 30+0+ 30.67 31.79 31.92 23. 16 23. 78 24.40 25.02 25.64 26.26 26.89 21.52 2.15 ze.TB 29.41 30.0$ 30.68 31.32 31.96 52.60 23.64 24.27 24.90 25. 53 24,17 26+81 27.45 2t.09 28.73 29.38 30.02 30+6' 31.32 31-98 52.63 33.29 26.11 24. 76 25.40 26. 05 26. 70 27. 35 28.00 28.66 29.32 29.98 30.64 31. 31.91 32.63 33.30 33.97 2+.39 25.25 25.91 26.57 27.23 27.93 28.5 24.23 29,91 30.58 31.25 11. 32.61 33.29 33.98 b4.M 52 25.5 61 28-30 28-99 29.69 3.39 1.09 31.T9 3.49 33. 33.9 34.6 15.33 36.04 26.03 26. 73 27.43 26. 13 26.64 29.54 30.25 0.97 31,68 32.39 33.11 381 34.56 35-24 36.01 16.74 26.51 21.23 27,94 28.64 29. 37 30. 10 30.82 31.55 32.27 53.00 33. 74 34.67 3.21 15.53 36.69 7,43 2T.00 30. 65 31.39 32.13 32.87 33.61 34.36 3.1. 35. 36.62 37.37 38. 13 27.48 24. 22 28.96 29. 71 30-45 31+20 31.96 32.71 33-47 34.23 . 35. 75 36.52 37.29 8.06 \8.83 26.23 26-92 27. 21.72 2.45 29.1. 29.91 Note: For a more detaled set of tables from 2% to 21.75%, see the reference tables in the Business Math Handbook. ANNUAL PERCENTAGE RATE OF FINANCE CHARGE PER $100 OF ANOUNT FIN ANCEO) 1.17 1.19 1.21 1.23 1.25 1.27 1.29 1.31 1.33 1.35 1.17 1.43 42 1.44 1.45 1.48 1.75 1.78 1.82 .85 .88 .91 .94 .97 2.00 2.04 2.37 2.10 2.13 2.18 2.19 2.22 2.34 2.38 2.43 2.47 2.51 2.55 2.59 2. 2.68 2.72 2.16 2.80. .9 2.93 2.97 2.93 2.99 3.04 J. 09 3.1+ 3.20 3.25 3.30 J.36 ).41 3.46 3.51 3.57 1.62 3.67 373 3.53 3.59 3.65 3.72 3.78 3.84 3.91 3.97 4.04 4.10 4.16 4.21 4.29 4.35 4.42 4.48 4.12 4.20 4.27 4. 35 4.42 4.49 4.57 4.64 4.12 4.74.67 494 5.02 5.09 5.17 5.24 4.72 4.81 4.89 4.98 5.06 5. 15 5.23 5.32 5.40 5.4. 5.58 5.68 5.15 5. a) ,.92 e.oo 5.32 5. 42 5.51 5.61 5. 71 5.80 5.90 6.00 6.09 6.19 6.29 6.36 6.4a 56 t, et 5.92 6. 03 6.14 6.25 6.35 6.46 6.5, 6.68 6.78 6.89 ,.oo 7,11 22 52 43 54 7.14 7.27 7.40 7.53 7.66 7.79 7.92 8.05 8.18 8.31 8.44 8.57 8.10 8.83 8.96 . 7.74 7. 89 8.03 . 17 8.31 8.45 8.59 8.74 8.88 9.02 .16 .30 .45 .59 9.73 . 87 8.36 8.51 8.66 8. 61 8.97 9.12 9.27 9.43 9.58 .71 9.8910.24 o.2010.), taso to.es 8.97 . 13 9.30 9. 46 9.63 9. 79 9.96 10.12 10.79 10.45 10.57 10.78 10.95 11.11 11.28 11.45 9.59 . 76 9.96 10.11 10.29 10.47 10.64 10.AZ Il+00 11.17 1.35 . 11.71 11.00 12.06 12.24 10.20 10.39 10.58 10.77 10.95 11.14 11.33 11.52 11.71 11.90 12.09 12.28 12 i.es iz.s s. 10.82 11.02 11.22 11.42 11.62 i1.82 12.02 12.22 12.62 12.67 12., i,03 ihn i,53 i,63 i,63 11.45 11.66 11.67 12.08 12.29 12.50 12.72 12.93 13.14 13.15 13.57 13.78 13.99 14.21 14.42 4.64 12.07 12.30 12.52 12.74 12.97 13 13.41 11.64 ),55 14.09 14,31 14.54 14.74 14.99 15.22 15. 44 12.70 12.93 13.17 13.41 13.6 13.8 1411 14.35 14.59 .A2 15.06 15.30 15.54 15.77 16.01 16.25 13.33 13.58 13.82 14.07 4.32 14.57 14.82 15.06 15.31 15.56 15.41 16.06 16.31 1656 IA81 17. 13.96 14.22 14.48 14.74 15.00 15.26 15.57 15.78 16.04 16.30 16.57 16. 81 17.0% 17.36 17.62 17.88| 14,59 14.87 15-14 15. 41 15.68 15.96 16.23 16.. 50 16.76 17.05 17.32 17.60 17.89 18.15 1.43 18.70 15.23 15. 51 15.80 16.08 16.37 16.65 16.94 17.22 17.51 17. 14,09 1.37 .66 18.95 19,24 .53 15.87 16.17 16.46 16.76 17.06 17.35 17.65 17.95 18.25 1.4.55 18.85 19. 19.45 19. 75 20.05 20.36 16.51 16. 82 17.13 17.44 17,75 18.06 18.17 18.68 18.99 19.10 9.62 19.91 20.24 20.56 20.87 21.19 17.15 17.47 17.80 18.12 18.44 18.76 19.09 19.41 19.74 20.0A 20.1 20.71 21.04 71 37 21.69 22.02 17.80 18.13 18.47 18.80 19.14 19.47 . 20.15 20.48 20.67 21.16 21.50 21.84 ??. ?2.52 22.86 18.45 18. 79 19. 14 . 49 19.83 20.18 20.51 20.89 21.23 21.5A 21.74 22.29 22.64 22.99 23.35 23.70 19.10 19.45 19.81 20. 17 20.54 20.90 21.26 21.62 21.99 27.35 22.72 ?3.OR 21.45 23. 74.IA 24.55 19.75 20.12 20.49 20.87 21.24 21.61 71.99 22.37 22.7 21.12 2 20-40 20.79 21.17 21.56 21.95 22.33 22.72 22.65 23.06 23.46 23.86 24.26 67 25.07 25.49 2588 26.79 26.70 27.11 21.72 22. 13 22.54 22.95 23.37 23.78 24. ?4.61 25.03 25.44 25.6 26.29 24.70 27.17 27.56 ?7,97 22.38 22.80 2),23 23.65 24.08 24.51 24.94 25.36 25.79 26.23 26.66 27.09 27.52 27.9 29.39 28.83 36 | 23.04 21.48 23.92 24.35 24.80 25.24 25.6R 26.12 26.57 27.01 27.48 27,90 28.35 2. 70.25 29. 23.70 24.16 24.61 25.06 25.51 25. 97 26.42 26.89 27.36 27.80 29.26 2.?? 29.18 29. 64 '0. 10 30.57 24.37 24.84 25.30 25.77 26. 24 26.70 27.17 ?7.64 28.11 28.59 29.26 29.51 30.01 30.49 .95 31.44 25.04 25. 52 26.00 26.48 26.96 27.4 27.92 28. 28.49 29.38 29.57 30.36 30.85 1.4 31.93 32. 32 25.71 +0 | 26. 20 26.70 27. 19 27.0? 28.10 28'68 29.10 29.68 ,o. ).09 3. JI,65 32, 19 ,2.69 3),201 26.39 26.89 27.40 27.91 28.41 28.92 29.44 29.95 30.46 30.97 31.49 32.01 32.52 33.04 13.55 34.08 27.06 27.58 28.10 28. 62 29. 15 29.67 30. 30.72 31.25 31.79 32.31 32.4 31.17 31.90 34.44 36.97 27.74 28.27 28.81 29.34 29. 88 30.2 10.96 31.50 3204 32.58 33.13 33.67 34.22 34-7h 5.31 35.86 26.42 28. 97 29.52 30. 07 30. 62 31.17 31.72 32.28 32.83 33.34 33.95 34.51 35.07 35. 63 6.19 36. 761 29.11 29. 67 30.23 30. 79 31.36 31.92 32.49 33.06 33.63 34.20 34.17 35. 35 35.92 36.50 17.0 37.66 29.79 30.36 30.94 31.52 32.10 32-68 33.26 33.84 34.43 35.01 35.60 36.1 36.78 17.37 37.96 38.56 30.48 31.07 31.66 32.25 32.84 33.44 34.03 34.63 35.23 35.83 36.43 37.04 37.64 1A. 25 1 .6 39.46 1.17 31.77 32.37 32.98 33.59 34.20 34.81 35.42 36.03 36.65 37.27 37. 84 38.50 9.13 9.75 40.37 31.86 32.48 33.09 33.71 34. 34 34.96 15.59 36.21 36.84 37.47 39.10 1. 74 39. 37 4.01 40.65 41.29 32.55 33. 18 33.82 34. 45 35.09 35. 73 36.37 37.01 37.65 38.10 3,94 9,59 40.24 40.89 41.55 42.20 33.25 31. 89 34.56 35. 19 35. 84 36.49 37.15 37.RI 38.46 39.17 39.79 4o. 45 41.11 41.7A 42.45 43.1.2 33.95 34.61 35-27 35.93 36.6 38.72 39.41 40.10 43.79 41.4A 6.73 37.42 38.12 38.82 47 43.19 43.91 44.64 45. 37 46* 10 46831 40.38 41.11 41.8 42.5 .31 4.05 44.79 45.53 46.27 47.r2 47.77 36.76 37.48 38.20 38.92 39 37.47 38.20 38.96 39. 68 40. 42 41.16 41.91 42.65 43.40 44.15 44 45.66 46.42 47,18 47.94 4R-711 38.18 38.93 39.68 40. 43 41. 41.95 42.71 43.47 44.23 45.00 45.77 46.54 47.32 88 60 4 82963 332222 2 46 2 2184 987 41 159 79 02 15 25 94 42 50 58 32 53 73 90 62 48 39 34 30 2 2 2 05 41, 7 56 92 06 14 81 27 32 71 87 60 6322 54 79 92 01 70 18 25 33 06 27 2 2a 78543322 29 55 68 78 690 08 81 864333222 83 22 37 46 27 62 65 36 52 957-74 543322 3 9636 17939 64332 2 8 08 21 31 98 45 52 2 79 158 86433222 4332222 628406284 11233445 2 12