(a) What is the finance charge (in $) on the loan? 2$ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) |%
(a) What is the finance charge (in $) on the loan? 2$ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) |%
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
Related questions
Question
Transcribed Image Text:Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with
monthly payments of $233.38 for 36 months.
(a) What is the finance charge (in $) on the loan?
(b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal
places.)
%
Transcribed Image Text:49 14.29
.64
21.26 21.73
TABLE 13-1 Annual Percentage Rate (APR) Finance Charge per $100
ANNUAL PERCENT AGE RATE TABLE FOR MONT HLY PAYMENT PLANS
SEE INSTRUCTI ONS FOR USE OF TABLES
FRB-103-M
ANNU AL PERCENT AGE RATE
NUMBER
OF
PAYMENTS 10.00% 10.25% 10. 5ox 10. 75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50% 12.75% 13.00% 13.25% 13.50% 13.75%
(FINANCE CHARGE PER S100 OF AMOUNT FINANCED)
0. 90
1.35
0.87
1.02
1.04
1.08
1.10
1.12
1.15
0.83
1.25
1.67
0.92
1.38
0.94
1.41
0.96
1.44
1.92
0.98
1.47
1.96
1.00
1.50
2.01
1.06
1.60
2.13
2.67
0.85
1.28
1.53
2.05
2.57
1.57
2.09
2.62
1-15
1.63
2.17
2.72
1.69
2.26
2.83
1.71
2.14
2.58
1.31
1.76
2.20
1.12
2.30
1.80
2.22
1.84
2.30
2.77
1.88
2.25
2.78
2.35
2.83
2.41
2.46
2.51
2.09
2.51
2.64
2.70
2.89
3.27
3.08
3.16
3.23
3.31
3.34
3.45
3.53
3.60
3.68
3.75
3.83
3. 90
3.97
4.05
2.94
3.36
3.01
3.45
3.70
3.78
3.87
4.04
4.12
4.65
4.21
4.29
4.38
4.47
4.55
5.13
5.71
4.64
3.53
3.98
3.62
4.07
3.88
4.17
4.26
4.36
4.46
4.55
4.74
4.84
4.94
5.03
5.22
4.21
5.07
5.17
5.28
5.60
4.64
5.11
6.05
4.64
4.76
4.88
4.99
5.23
5.35
5.46
5.82
5. 20
5. 64
6.08
5.97
6.10
6.23
6.36
6.49
6.62
7.18
6.75
7. 32
7. 90
8.48
9.06
6.88
7.01
5.07
5.50
5.33
5.78
6.23
5.45
5.58
6.06
6.53
7.01
5.71
5.84
11
12
13
5.92
6.20
6.34
7.04
6.48
6.99
1. 50
8.01
6.62
7.14
6. 76
7.29
7.82
6.90
1.44
7.99
8.53
7.46
8.05
7.60
8.20
5.93
6.84
7.59
1.75
6.38
6.85
1. 32
6.68
7.66
8.19
8.31
8.88
1.17
7.14
8.15
8.71
14
8.64
6.36
6.80
6. 52
6.97
6.69
7.14
15
7.49
7.66
7.84
8.36
9.23
9.41
9.46
9. 64
10.03
10.73
10.61 10. 82
7.60
7.18
7.97
8.15
8.34
8.53
8.71
8.90
9.08
9.27
9.83
10.43 10.63
11.03 11.24
10.02
16
17
1.23
7.67
7.41
7.86
8. 31
8. 76
9.21
8.06
8.25
8.73
8.45
8.65
8.84
9.35
9.86
9.04
9.56
10.08
10.60
9.24
9.77
9.44
9.63
9.83
10. 40
10.96
8.52
10.19
8.93
9.42
9.90 10.13
9.14
9.64
9.98
8.10
8.54
10.52
10.30
10.74
11.18
11.76
11.41
12.00
19
8.98
11.63
11.85
9.20
9.67
20
8.98
9.44
10.37
10.83
11.06
11.30
11.51
12.23
12.46
13. 08
13.44 13. 70
14.32
14.95
15.57
9.66 9.90
10.12 10.37
10.15 10.39
10.62 10.88
I1.10
11.58
10.63 10.8R
11.13 11.39
11.12
11.36
11.85
12.41
12.97
21
9.42
12.10
12.34
12.59
12. 4
11.61
11.90 12.16
12.71
22
9.86
11.64
12.67
12.93 13.19
10.30
10.75
12.44
12.98
23
10.57 10.84
12.17
13. 24
13.51
13. 76
14.05
11.37
11.86
11.63 11.9o
11.02
11.30
12.14
12.42
12.70
13.26
13.54
14.10
13.82
14.40
14.10
14.38
14.98
14.66
15.2A
24
25
I1.19 11.48 11.77 12. 06 12.35 12.64 L2.93 13.22 13.52 13.81
14.69
13.15 13.45 13.75
I1.64 11.94
12.40
12.09
14.06
14.36
14.67
15.24
15.61
14.97
15.28
15.87
16.47
17.07 17.41
17.66 18. 02
15.59
15.89
16.20
26
27
12.24
12.71
13.18
12.54 12.85
13.34
13.03
13.51
13.84
14.00
13.66
14.60
15.15
14.92
15.48
16.04
15. 56
16.19
16.51
16.83
14.16
17.13 17.46
14.82
15.35
15.89
28
12.53
12. 86
16. 14
16.80
13. 12
15.70
16.24
12.98
13.66
14.33
14.67
15.01
16.38
16.72
17.75 18.10
30
13.43
13. 78
14.13
14.48
14.83
15.19
15.54
16.60
16.95
17.31
18.38
18.74
13.89 14.25
14.34
14.71
15.70
16.43
16.79
17.15
17.16
17.73
17.53
18.11
18.29 18.69 19. OR
19.27
19.85
17.90
18.49
18.27
18.87
18.63
19.25
19.38
19.63 20.02
20.26 20.66
20. 90 21.31
21.53 21.9s
19.00
31
32
14.61
15.09
15.57
14.97
15.46
15.95
15.33
15.84
16.34
16.21
16.73
17.25
17.77
16.06
16.59
17.12 17.51
17.65
18.18
16.97
17.90
19.47 19.87
20.08
20.69 21.11
33
14.79
15.18
15.25
15.70
15.65
16.11
18.05
18.46
18.86
19.43
19.67
20.27
16.05
16.44
20.49
16.85
11.35
19.01
35
16.53
16.94
18.60
16. 58 17.01
17. 06 17.49
19.57 20.00
20.13
20.69
20.43
21.30
21.91
22.52 22.99
22.20 27.67 23.14 23.61
23.76
20. 87
21.73
22. 36
22.17
22.60
23.25
17.43 17.86
18.29
18.81
19.33 19.78
18.71
36
37
38
16.16
16.62
17.08 17.53
17.54
18.00
19.14
19.25 19.69
20.24
17.93
18.37
20.58
21.02
21.46
22.81
23.45 23.91
24.09 24.56
25.22
17.98
18.43
21.15
21.61 22.07
18.00
18.48
18.88
19.39
19.90 20.38 20.86
18.46
18.93
19.86
20.79
21.34
39
20.32
22.19
23.27
40
18.95 19.43
21.82 22. 30
24.25
22.39
22.A8
22.96 23.47
23.3A
23.88
24.3A
25.n0 25.51
25.62 26.15
2も。25
18.47
18.95
19.44
19.93
24. 88
25.3A
25.98
20.42
20.93
20.91
21.44
41
21.40
21.89
23.98 24.49
24.57
42
1१.१३
20. 43
21.94 22.45
26. 03 26.55
18.93
19.40
19.86
19.43
20. 94
21.44
22.49 23.0I 23.53 24.05
24.10
24.67
25.10
26.6A
27.21
19.91
20.42
21.45
21.97 22.50
22.49 21.03
21.97
20.9
23.03 23.57
23.58 24.12
25.17
25.77
25. 71
26.32
27.33
27.99
27.88
28.55
20.39
26. 79
24.64
25.22
45
20.33 20.87 21.41 21.95
26. 88
27.43
23.57 24.13 24.69
22.97 23.53 24.10 24.68 25.25
25.23 25.81
26.38
26.3) 26.95
20.80 21. 35
21.27
21.74
25.25 25.81
25.82
22.46
23.01
26.37
26.98
26.99 27.58 2A.18
28.19 28.80
28.80
2A.65
27.56 2R.14 2A. 72 29.31
29.77 29.37 29.97
30.63
46
26.94
27.51
2A. 08
29.22
21.90
21.83 22.40
22.90
26.40
29. a9
30.57
31.24
31.92
47
22.32
23.48
48
49
50
24.06
24. 5
26.40
26.98
21.59
27.56 28.19
29.41
30.04
22.21
22. 80
23.39
23.99
25.78
30.02
22.69 23.29 23.89 24.50 25.11
25.12
29.42
30.67
31.29
23.16 23. 78
24.27
24. 16
25.25
24.40 25. 02 25.64 26.26 26.89
26.17
26.70
31. 32
31. 98
32.63
28.15
28.78
29.41
30.02
30.05
30.67
31. 10
31.93
30.68
31.96
32.60
51
52
27.52
27.45 28.09
28.00 28.66
28.56 29.23
29.13
23.64
24.90
31.32
32.63
33.29
25. 53
25.40 26. 05
25.91
26.81
28.73
29. 38
29.12 29.48
29.91
30.64
31.25
33.30 33.97
27.35
27.90
31.97
32.61
53
24.11
54
24.59
26.57
27.23
30.58
11,29
14.66
55
25.07
25. 74
26.41
27.09 27.77 28.44
29.81
30.50
31.18
31.87
32.56
33.26
33.95
34.65
35. 15
33. 20
33.83
34.47
30. 39
31.09
31.79
32.49
33.11
33.74
34.36
33.91
34.56
34.62
35. 28
15.95
35.33
36.01
36.69
37.37
38.06
36.04
36.74
37.43
56
57
25.55
26.03
26.51
26.23
26.73
27.23
27.61
27.43 28. 13
27.94 28.
26.92
28.30
28.84
29.37
28.99 29.69
29.54 30.25 30.97
30. LO
32.39
33.00
33.61
27.48 28.22 28.96 29.71 30.45 31.20 31.96 32.71 33.47 34.23
31.68
32.27
32.87
35.21
35.A6
36.52
28. 66
30.42
31.55
58
59
35.11
36.62
18.13
38.83
27.00
27.12
28.45
29.18
29.91
30.65
31.39
32.13
60
34.99
35. 75
37.29
TABLE 13-1 Annual Percentage Rate (APR) Finance Charge per $100 (continued)
ANNUAL PERCENT AGE RATE TABLE FOR MONTHLY PAYMENT PLANS
SEE INSTRUCTI ONS FOR USE OF TABL ES
FRB-104-M
NUMBER
OF
ANNUAL PERCENT AGE RATE
PAYHENTS 14.00% 14.25% 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 S100 OF AMOUNT FINANCEDI
1.17
1.75
2.34
2.93
3.53
1.19
1.78
2.38
1.21
1.82
2.43
1.23
1.85
2.47
3. 09
3. 12
1.25
1.88
2.51
3.14
3.78
1.27
1.91
2.55
1.29
1.94
2.59
3.25
1.31
1.97
2.64
3. 30
1.33
2.00
2.68
1. 35
2.04
2.12
1.17
2.07
2.16
1.40
2.10
2.80
1.42
1.44
2.16
2.89
1.46
1.48
2.22
2.97
3. 73
2.13
2.85
2.19
2.93
2.99
3.04
3.20
3. 36
3.41
3.46
3.51
3.57
3.62
4.35
3.67
4.42
3.59
3.65
3.84
3.91
3.97
4.04
4.10
4.16
4.23
4.29
4.48
4.12
4.72
5.32
4.20
4.27
4.89
5.51
6.14
6.77
4.35
4.42
5.06
5.71
6.35
7.00
4.49
4.57
4.64
4.72
5.40
4.79
5.49
4.87
4.94
5.02
5.75
6.48
7.22
7.96
5.09
5.83
6.58
7.32
5.17
5.92
6.67
5.24
6.00
6.77
7.54
4.81
4.98
5.15
5.23
5. 32
5.58
5.66
5.42
6.03
6.65
5.61
5.80
5.90
6.00
6.09
6.19
6.29
7.00
7.12
6.38
5.92
6.53
6. 25
6.46
7.12
6.57
7.24
6.78
7.48
6.89
1.60
7.11
7.84
1.43
6. 88
7. 36
8.08
8.19
8.31
1.14
7.74
8.36
8.97
9.59
7.27
7.89
8.51
9.13
9.76
7.40
7.53
8.17
7.66
1.19
7.92
8.05
8.18
8.31
8.44
8.57
e.70
12
13
8.83
8.96
9.59
9,73
10.35 10.50
9.09
9.87
8.03
8.31
8.97
8.45
8.59
9.27
8.74
8.88
9.02
9.45
10.20
10.67 10.78 10.95 11.11 11.28
11.53 11.71 11.88
9.16
9.89
9.30
10.04
8. 81
9. 46
8.66
9.12
9.43
9.58
9.73
10.66
9.30
9.63
9.19
9.96
10.12
10.29 10.45
11.45
15
9.94
10.11 10.29 10.47 10.64
10.82 11.00 11.17
11.35
12.06
12.24
16
17
18
10.20 10.39 10.58
10.82 11.02 11.22
11.45 11.66
12.07
12.70 12.93 13.17 13.41
I1.71 11.90
12.42
10.77 10.95
11.14
11.33
11.52
12.09
12.83 13.03
13.57
14.31
12.28
12.46
12.65
12.84
13.03
11.42
12.08
12. 14
11.62
12.29
12.97
13.64 13.88 14.11
11.82 12.02 12.22
12.50
13.19
12.62
13.14 13.35
13.86
13.23 13.43 13.63
13.83
14.64
15.44
14.59 14.82 15.06 I5. 30 15.54 15.77 16.01 16.25
11. 78
13.99 14.2I 14.42
14.76 14.99 15.22
I1.87
12.72
12.93
13.64
12. 30
12.52
13.4
14.09
14.54
20
14.35
14.07
14.74 15.00
13.33 13.58 13.82
13.96
14.59
15.23
15.87 16.17
15.81
16.57 16.83
17.32
18.09
18.85
15.31 15.56
16.04
16.30
14.32
16.06
14.57 14.82
15.5?
15.06
15.78
16.56
16.31
16.81
17.07
14.22
14. 87
17. 88
14.48
15.26
15.41 15.68 15.96 16.23
16.37 16.65
17.06
17.09
17.36 17.62
18.15 18.43
18.95 19.24
23
15.14
16.78 17.05
17.51 17.80
18.25 18.55
17.60 17.88
18.37
18.66
19.15
16.50
18.70
15. 51
15.80
16.46
16. 08
16. 76
16.94
17.35 17.65
17.22
17.95
19.53
19.45 19.75 20.05 20. 36
25
17.44
16.12 18.44
18.47 18.80 19.14 19.47
19.49 19.93 20.18
16.82
17. 75
20.56
21.37
20.87
21.69
16.51
17.13
17.80
18.06
18.37
19.09
19.81
18.69
19.41
18.99
19.74
19. 30
19.93
20.71
21.16 21.50 21.84
19.62
21.19
22.02
27.18 22.52 22. 96
23.70
24.55
18. 76
20.24
21.04
27
28
29
17.15
17.47
17.80
18.13
18.45 18.79
20.06
20.48 20.82
20.39
20.15
19.14
19.81
20.53 20.88 21.23 21. 58
21.११
21.94
22.29 22.64 22.99 23.35
23.45 23.A1
24. 14
19.10
19.45
20.17 20.54 20.90 21.26
21.62
22.35
22.12
23.08
31
32
33
19.75 20.12 20.49
20.40 20. 19
20.87 21.24 21.61 21.99 22.37 22.74 23.12 23.50 23.88 24.26
24.28 24.68 25.07
25. A
24.64 25.02
25.46
75.86
26.29
26.70
25.40
22.72 23.11
23.45
21.17
21.56
22.25
21.95 22.33
23.50
23.89
6.25
21.06
21.46
21.72
22.13
22.38 22.80
24.25
21.85
22.54
23.23 23.65
23.86
22.95 23.37 23.78 24.19 24.61
24.08 24.51I 24.94 25. 36
22.65
23.06
25.07 25.48
25.86
24.47
27.11
27.97
27.52 27.96 28.39 28.83
26. 28 26.70 27.12 27.54
34
25.03 25.44
35
25.79 26.23
26.66
27.09
28.80 29.25
29. 64 30.10
30.49
31.34
31.68 32.19
36
37
23.04
23.48
23.92
24.61
25.30
24.35
25.24
26.17
26.42 26.8
25.77 26.24 26.70 27.17 27.64
24.90
25.68
27.01
27.14 27.80
28.11
26.57
27.46
27.90
28.26 28.17
29.06 29.53
29.87
28.39
29.18
30.01
30.85
29.70
30.57
31.44
23.70 24.16
25.06 25.51 25.97
38
24.37
25.04
25.71
24.84
28.59
28.89 29.38
29.68
30.96
25. 52 26.00
26.20
26.70
26.48 26.96
27.19 27.69 28.18
27.44 27.92
28.41
28.68 29.18
31.83
32.69
30. 36
32. 32
30.18
30.68
31.18
33.20
32.52 33.04 33.56 14.08
34.44
35.31
36.19
35.92 36.50 37.08 17.66
41
26.39 26. 89 27.40 27.91
28.41 28.92 29.44 29. 95
30.72
31.50
30.46 30.97
31.25
32.04
31.49
32.31
32.01
27.06 27.58
27.74
28.42
29.15 29.67
29. 88
30.19
30.96
31.72
34.97
35.86
36. 75
42
28.10 28.62
29. 34
30.07
30. 79
31.78
32.84
33.67
34.51
35. 35
31. 90
34.76
35.07 35.63
31.17
28.81
43
28.27
30.42
30.62 31.17
31. 36 31.92
32.58
31.13
33.95
34.77
34.22
44
28.97 29.52
29.11 29.67 30.23
32.28
32.83 33.39
45
32.49 33.06
33.63 34.20o
29.79
30.48
31.17
37. 37 37.96
38.25 38. 86
39.13
40.01
46
30. 36
30.94
31.52 32.10 32.68
32.25
32.98 33.59
33.71
34.45 35.09 35. 73 36.37
33.26
34.03
34.81
15.59
33.84
34.43
35.23 35.83
35.01
35.60
36.43
36.78
37.64
38.50
38.56
36.19
37.04
37.88
31.07
31.77
32.48
33.18
31.66
32.84 33.44
34.20
34.96
34.63
35.42
36.21
39.46
48
32.37
36.65
36.03
36.84
37.01 37.65 38.30
40.37
41.29
42. 20
19. 75
37.47
33.09
33.82
3A. 14
38.94 39. 59
31.86
34. 34
39.10
40.65
40.24 40.89 41.55
39.37
50
32.55
37.15
37.94
38.72
39.52
38.46
33.89
34.61
35.19 35. 84
51
33.25
33.१5
34.65
39.12
40.45
41.1
41.7 42.45
42.67
34.54
36.49
37.81
38.61
39.41
40.22
41.03
19.79
40.63
41.18
41.99
42.87
43.79
43.12
44.04
44.97
52
35.27
35. 93 36.60
37.27
39.2A
40.10
39.96
41.48 42.17
42.33 43.04
43.19 43.91
43.36
43.57 44.27
44.47 45.18
53
35. 32
36.00
36. 64 37.36 38.04
37.42 38. 12 38.82
38.17
40.79
35.35
36.04
36.73
40.92 41.63
45.90
55
36.05
38.88 39.60
40.31
44.64
45.37 46.10
46.83
56
39.45 40. 38 41.11 41.84 42.57 41.31
44.05 44.79
44.91
45.66
36.76
37.48
38.20
38.94
39.68
38.92
39.68
45.53 46.27 47.02
47.77
57
37.47
38.20
40.42 41.16 41.91 42.65
47.18 47.94
4e.09
49.01
49.12 49.92 50.73
43.40 44.15
46.42
44.23
45.07
39.61 40. 39 41.17 41.95 42.74 4 3.53 44.32 45.11 45.91
38.93
39. 66 40.42 41.19 41.96 42.74
42.71 43.47
43.51 44.29
8.87
49. 80
48.71
19.65
38.18
38.89
40. 43
45.00
45.85
46.71
45.77 46.54
46.64 47.42
47.51
41.19 41.95
47.32
59
60
48.21
50.60
51.55
48.31
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