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
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
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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Question
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
|
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