For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%. 1 years. Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 22 Click the icon to view the annual percentage rate table. (a) The finance charge is $ (Round to the nearest dollar as needed.)
For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%. 1 years. Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 22 Click the icon to view the annual percentage rate table. (a) The finance charge is $ (Round to the nearest dollar as needed.)
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
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Transcribed Image Text:For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%.
1
Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 2-
22
Click the icon to view the annual percentage rate table.
(a) The finance charge is $
(Round to the nearest dollar as needed.)
years.
Transcribed Image Text:APR Table
Number of
Monthly
Payments (n)
6
12
18
24
30
36
48
60
4.0%
4.5% 5.0%
1.17
2.18
5.5%
1.32
1.46
2.45
2.73
3.20
4.00
3.60
4.22
4.75
5.29
5.25
5.92
6.59
6.29 7.09
7.90
8.38
9.46
10.54
10.50
13.23
11.86
Annual Percentage Rate (APR) for Monthly Payment Loans
8.71
11.63
14.61
6.0%
1.76
1.61
3.28
3.00
4.41
4.82
6.37
5.83
7.29
Annual Percentage Rate (APR)
9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0%
8.0% 8.5%
6.5% 7.0% 7.5%
Finance Charge per $100 of Amount Financed (h)
2.79
2.64
2.49
2.35
2.20
2.05
3.83
4.66
4.39
4.11
4.94
5.22
5.63
6.04
6.45
6.86
8.00
7.45
8.55
10.66
13.64
12.81
9.98
9.30
2.94 3.08
5.78
5.50
8.10 8.52
7.28 7.69
11.30
9.64 10.19 10.75
9.09
14.13
12.74 13.43
11.35 12.04
17.86
17.01
16.16
15.32
14.48
20.59 21.74 22.90 24.06
27.48 28.96 30.45
11.98
11.16
14.94
16.06 17.18 18.31 19.45
20.23 21.66 23.10 24.55 26.01
18.81
1.90
3.56
5.22
6.91
7.94 8.61
9.52
10.34
12.73
13.83
16.00
17.40
3.23 3.38
6.34
6.06
8.93
11.86
14.83 15.54
18.71
25.23
26.40
31.96 33.47
3.53
6.62
9.35
12.42
9.77
12.98
16.24
19.57
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