Carmella purchased a refrigerator under a conditional sale contract that required 24 monthly payments of $70.26 with the first payment due on the purchase date. The interest rate on the outstanding balance was 15% compounded monthly. a. What was the purchase price of the refrigerator? (Do not round Intermedlate calculations and round your final answer to 2 declmal places.) Purchase price $4 b. How much interest did Carmella pay during the entire contract? (Do not round Intermedlate calculatlons and round your final answer to 2 declmal places.) Interest paid 24

Carmella purchased a refrigerator under a conditional sale contract that required 24 monthly payments of $70.26 with the first payment due on the purchase date. The interest rate on the outstanding balance was 15% compounded monthly. a. What was the purchase price of the refrigerator? (Do not round Intermedlate calculations and round your final answer to 2 declmal places.) Purchase price $4 b. How much interest did Carmella pay during the entire contract? (Do not round Intermedlate calculatlons and round your final answer to 2 declmal places.) Interest paid 24

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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Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $43.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
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