Jack Fitzgerald wishes to purchase a used car that has a cash price of $11,000. The installment terms include a down payment of $4,000 and 36 monthly payments of $225. a) What finance charge will Jack pay? b) What is the APR to the nearest half percent? The finance charge is $ D Annual Percentage Rate Table for Monthly Payment Plans. (Finance charge per $100 of amount financed) Number 7.50% 8.00% 8.50% 9.00% 9.50% of Payments 36 11.98 12.81 13.64 14.48 15.32 48 16.06 17.18 18.31 19.45 20.59

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
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Jack Fitzgerald wishes to purchase a used car that has a
cash price of $11,000. The installment terms include a
down payment of $4,000 and 36 monthly payments of
$225.
a) What finance charge will Jack pay?
b) What is the APR to the nearest half percent?
Annual Percentage Rate Table for Monthly
Payment Plans.
(Finance charge per $100 of amount financed)
Number 7.50% 8.00% 8.50% 9.00% 9.50%
of
Payments
36
11.98 12.81 13.64 14.48 15.32
48
16.06 17.18 18.31 19.45 20.59
The finance charge is $
Transcribed Image Text:Jack Fitzgerald wishes to purchase a used car that has a cash price of $11,000. The installment terms include a down payment of $4,000 and 36 monthly payments of $225. a) What finance charge will Jack pay? b) What is the APR to the nearest half percent? Annual Percentage Rate Table for Monthly Payment Plans. (Finance charge per $100 of amount financed) Number 7.50% 8.00% 8.50% 9.00% 9.50% of Payments 36 11.98 12.81 13.64 14.48 15.32 48 16.06 17.18 18.31 19.45 20.59 The finance charge is $
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