A bicycle is purchased for $940 and financed for 11 months. There was not a down payment. If the total finance charge is $78.00, find the annual percentage rate using Exhibit Table 13-1. NUMBERINSTRUCTIONS FOR USE OF TABLES PLANSANNUAL PERCENTAGE RATEANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYMY PAYMENT PLANSFRB-103-M% 13.25% 13.50% 13.75%FRB-104-MANNUAL PERCENTAGE RATE5% 14.50% 14.75% 15.00% 15.25% 15.50% 15.75% 16.00% 16.25% 16.50% 16.75% 17.00% 17.25% 17.50% 17.75%IFINANCE CHARGE PER $100 OF AMOUNT FINANCEDIANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYMENT PLANSANNUAL PERCENTAGE RA18.00% 18.25% 18.50% 18.75% 19.00% 19.25% 19.50% 19.75% 20.00% 20.20.50% 20.75% 21.00% 21.25% 21.50% 21.75%MOUNT FINANCED(FINANCE CHARGEFRB-105-M

Loan are paid monthly payment that carry the payment of interest payments and also amount of principal amount of loan also but these are fixed payments over the period of loan.Finance charges =$78 Loan amount =$940 Financial charges per $100= Financial charges/Loan amount x 100 Financial charges per month =78/940 × 100=$8.30 Financial charges per $100=$8.30 Number of payments =11 Now Looking into 2nd Table for 11 payments and 8.3 financial charges per $100. 8.18 - 16% 8.31- 16.25% APR OF LOAN =16.25% Is the annual percentage rate of loan.

Answered: A bicycle is purchased for $940 and…

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A bicycle is purchased for $940 and financed for 11 months. There was not a down payment. If the total finance charge is $78.00, find the annual percentage rate using Exhibit Table 13-1.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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