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 $7,970 Down payment $0 Annual percentage rate 12.78% Deferred price $10,879.20 or 60 payments at $181.32 per month

a.	Calculate the amount financed.

Amount financed

$

b.	Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.)

Finance change

$

c.	Calculate the APR by formula. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)

APR by formula

%