Answered: Given $140.10 per month; cash price…

Given $140.10 per month; cash price $5,600; down payment $0 Cash trade months with bank-approved credit; amont financed $5,000. Finance charge $2,806. (Use tables in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given $140.10 per month; cash price $5,600; down payment $0 Cash trade months with bank-approved credit; amont financed $5,000. Finance charge $2,806. (Use tables in the handbook) The APR by table lookup is:

Expert Solution

Step 1

Interest per $100= (finance charged/ amount financed)*100

(2806/5000)*100

= 56.12

Step by step

Solved in 2 steps with 1 images

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MN.3.