Question
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
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 $7,860 Down payment $0 Annual percentage rate 12.53% Deferred price $10,611.00 or 60 payments at $176.85 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 12.50%. (Use Table 14.2) (Round your answer to the nearest cent.) Monthly payment by table lookup $
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