Shirley, a recent college graduate, excitedly described to her older sister the $1,640 sofa, table, and chairs she found today. However, when asked she could not tell her sister which interest calculation method was to be used on her credit-based purchase. Calculate the monthly payments and total cost for a bank loan assuming a one-year repayment period and 14.25 percent interest. Now, assume the store uses the add-on method of interest calculation. Calculate the monthly payment and total cost with aone-year repayment period and 12.25 percent interest. Explain why the bank payment and total cost are lower even though the stated interest rate is higher.
The monthly payment for a bank loan assuming one-year repayment period and 14.25 percent interest is $___ (Round to the nearest cent.)
score : 0%,00 Problem P7-2 (similar to) Shirley a recent college graduate,excitedly described to her older sister the $1,880 sota, table, and chairs she found today However when asked she could not Soll her ser wacherest cakculiation method was to be uned on her credt based puchne Calculale the one yoar repayment period and 12 25 percent nterest Explain why the bank payment and total cost are lower even though he stated interest rate is hegher Cick on te table icon to vwew the MiuPF Latle monthly payments and total cost for a bank loan assuming a one-year cepayment period and 14 25 percent interost Now assume the stone uses the add on nethed of nterest calculation Calcuiate the montily payment and tal cost wth a The monthly paryment for a bank loan assuming one yea Datia Table Monthly h 168 91 8549 : 5767 : 4376 | 3542 | 29 : 2292 | 10 76 1599 5891 44 10 109 35. L. 85 84 550% .1 575% your answer in the answer box and then click Ch -16972 : 86 18 | 56 34 | 444-3600 | 30S4 | 2380 19 i Data Table 5555555566666666 L 7.00% 170 09-1 8653 | 5868 | 44771 3643 | 3088 | 23 95 19 80 -17 134567801 15.09 1363 170 21 8664 58.80 4489 3655 3099 24.06 1992 17.17 1522 13 76 7.50% 170 33 : 8676 5891 4500 3666 3111 2418 2004 | 1729 1 1534 1388 170 45 86 87 5903 45 11 36773122 24 30 20 16 1741 1546 1401 170 58 8699 5914 4523 3689 31.34 24 41 2028 1753 1559 14 14 444 44555555 25% 11111222222 75% 8999 8.25% 2357 9012 170 70 87 10 5925 4534 3700 3145 24 53 2040 1766 1571 1426 580 850% 17082.1 8722 5937 45 46 3712 3157 . 2465 20 52 1778 15 24 875% | 17095 | 8734 | 59 48 | 4557 | 3723 | 3168 | 2477 | 2064 | 1790 171.07 8745 59 60 4568 3735 3180 2579 57 37 23 3168 24.77 2064 1790 15.9614.52 2489 2076 1803 1609 14 65 1 3735 31.80 17119 8757 5971 45 80 3746 3192 2500 20 88 1815 16 22 1478 | 171.32 | 8768 5983 4591 37584-32 25 1212100- 18 27116 34 1491 171 44 87 80 5994 4603 3770 3215 2524 21121840 16.47 15 1000% 171 56 87 92 60 06 46 14 3781..-3227.2536. 2125. 1853 i-16 60 t-1517 1025% | 171 681 8803 | 6017 | 4626 | 3793 | 3238 | 2548 | 2137 | 1865 | 1673 | 1531 171 81 88 15-60 29 4638 -38043250 2560. 2149 78. -1686. .1544 1075% | 171 93 | 8827 | 6040-14649 3816- 3262 | 2572 | 2162 1801 | 16 99 | 1557 31.92 25.00 25% 2524 21.12 18.40 16.47 15.04 9.75% 10.50% 2174 19.03 46.61 38.28 172.05 88.38 60 Print Done 172 18 88.50 60 63 46723840 32 86 25.97 21.8719 9371 3568 11 25% 11 50% 93604 916 17.25 15.84 172 30 88 62 60.75 46.8438.51 3298 2609 2199- 1929- -1739 1598 11 75% 17242 | 8873 60 87 46 96 38 63 33 10 2621 2212 1942 | 1752 | 1612 | 4707 | 3875 | 3321 | 26 33 1 2224 I 1955 I 1765 I 1625 1225% | 172 67 | 88 97 | 6110 | 4719 | 38 87 3333 | 2646 | 2237 | 1968-779-639 12 50% 172 80 8908 6121 4731 3898 33 45 2658 2250 1981 1792 1653 12.75% | 17292 | 892 6133 | 4742 | 3910 | 3357 | 2670 | 22 63 | 1994 | 1806 | 1667 -173 04 89 32 61.45 4754 39 22-3369 26 83-22 75 2007-18 19-16 81 13.25% | 17317 | 8943 | 6156 | 4766 | 3934 | 3381 | 26 95 | 22 88 | 20 21 | 1833 | 1695 1350% 17329 8955 6168|4778 L3946 3394 2708 2301 t 2034 1846 I 1709 13 75% 173 41 896-618-4789 3958 3406 2720 2314047- 1860 1723 1173 54 8979 6192 48 01 -3970134 18127 33 2327 2061 1874 17 37 1425% | 173 66 | 89.90 | 6203 | 4813 | 39 82 3430 I 2745 | 2,0 2074 | -888 i5 14 50% | 173 79 | 90 02 | 6215 | 4825 | 39 94 | 34 42 | 27 58 | 23.53 | 20 87 | 19.02 | 1766 147596 17391 9014 62 27 4837 4006 3454 2770 23 66 2101 | 1916 | 1780 15 0096 | 17403 9026 -62 381-4849 140181 34 67 2783 2379-T2115. 19 30 | 1795 99999990230000011 1200% | 17255 | 88 851 6098 467801 13 00% 3581470 6780124 1400% 247 15.25%.-I -n 174 16 88899999 07 7801 357801 67891234 2357 235780 67890 8025702 174 28 9049 6262 48 72 4042 3491 28 08 2405 2142 1958 1824 | 17441 | 90 61 6274 4884 4054 35 03 | 28 21 2419 2155 1972 1838 3516 | 2834 | 2432 | 2169 | 1986 1853 1 85 6297 49 08 4078 35 28 28 47 24 45 183 2000 1868 9097- 630914920-4091 -354012860 245821.97 20 15 18.8 174909109 63 21 4932 4103 3553 2873 2472 2211 2029 18 97 17.00% 17503 9120 16333 4944 41 15 3565 28 86 24 85 22 25 2044 1912 15 50% 0 16 00% | 17453 | 9073 | 6286 | 4896 | 4066 | 15 75% 16.25% 165096 | 16 75% 174 78 1 1725% | 175 15 9132 6345 4956 41273578 2898 2499 2239 2058 1927 17 5096 175 28 9144 63 57 49 68 4139 3590 2911 2512 22 53 2073 1942 17 75% 17540 91566369 49 80 4152 3603 2924 2526 2267 2087 19 57 18 00% 17553 9168 6381 49 92 4164 3615 29 37 2539 22 81 2102 19 72 1825% 17565 9180 6393 | 5004 | 4176 3628 | 29 51 | 2553 | 22 95 | 2116 | 1988 1850% -17577 91 92 64 04 50 17 4189 36 40 29 64 25 67 2309 21.31 2003 1875 % 7590 92 04 6416 50 29 4201 36 53 2977 25 80 23 23 214-2018 1900% 17602 9216 6428 5041 4213 3666 29 90 25 94 23 38 | 2161 | 2033 1925% | 17615 | 9228 | 6440 | 5053 42 26 | 3678 | 3003 | 26 08 | 2352 | 2176 12049 176 27 92.40 6452 50 65 4238 3691 306 2622 2366 2191 9251 6464 5077 4251 3704 30 30 26 35 2381 2206 20 80 2000% | 17652 | 9263 | 6476 5090 42 63 3716 3043 2649 | 23 95 | 22 21 | 2095 176 65 9275 6488 5102 4275 37 29 3056 2663 2410 22 36 21.11 2222222222 176 90 9299 6512 5126 4300 3755 30 83 2691 2439 22 66 2142 -i 177 02 | 93 11 65 24 5139 43 13 37 68 3097 27 O5 2454 2281 2158 7715 9323 65375151 43 26 3780 31.10 27.19 2468 2296 21.74 2150% 177 27 93 35 65 49 5163 4338 3793 - 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