Jamie needs a new roof on her house. The cash cost is $4000. She decides to finance the project by paying 17.0% down, with the balance paid in 24 monthly payments of $151. a) What finance charge will Jamie pay? b) What is the APR to the nearest half percent?
Jamie needs a new roof on her house. The cash cost is $4000. She decides to finance the project by paying 17.0% down, with the balance paid in 24 monthly payments of $151. a) What finance charge will Jamie pay? b) What is the APR to the nearest half percent?
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 15P
Related questions
Question
![Jamie needs a new roof on her house. The cash cost is $4000. She decides to finance the project by paying 17.0%
down, with the balance paid in 24 monthly payments of $151.
a) What finance charge will Jamie pay?
b) What is the APR to the nearest half percent?
Click the icon to view the APR table.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc6fbff9-4759-45b9-9f61-27046377aa96%2F2eabd0bf-408f-4e52-8082-a03be3e58fe3%2F0bsf9e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jamie needs a new roof on her house. The cash cost is $4000. She decides to finance the project by paying 17.0%
down, with the balance paid in 24 monthly payments of $151.
a) What finance charge will Jamie pay?
b) What is the APR to the nearest half percent?
Click the icon to view the APR table.
![Number of
payments
6
12
18
24
30
36
48
60
4.0% 4.5%
Annual Percentage Rate Table for Monthly Payment Plans
Annual Percentage Rate
5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0%
(Finance charge per $100 of amount financed)
1.17 1.32
1.46
2.18 2.45 2.73
4.94 5.22
3.20 3.60
7.28 7.69
4.22
4.75 5.29
9.64 10.19 10.75
1.61 1.76 1.90 2.05 2.20 2.35 2.49 2.64 2.79
3.00 3.28 3.56 3.83 4.11 4.39 4.66
4.82 5.22 5.63 6.04 6.45 6.86
5.83 6.37 6.91 7.45 8.00 8.54 9.09
7.26 7.94 8.61 9.30 9.98 10.66 11.35
8.71 9.52 10.34 11.16 11.98 12.81 13.64
12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59
16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48
5.25 5.92 6.59
12.04 12.74
13.43
6.29
7.09
7.90
14.48 15.32
16.16
8.38
9.46
10.54
11.63
21.74
10.50 11.86 13.23 14.61
4.00 4.41
2.93
5.50
8.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc6fbff9-4759-45b9-9f61-27046377aa96%2F2eabd0bf-408f-4e52-8082-a03be3e58fe3%2Fcrcmuow_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Number of
payments
6
12
18
24
30
36
48
60
4.0% 4.5%
Annual Percentage Rate Table for Monthly Payment Plans
Annual Percentage Rate
5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0%
(Finance charge per $100 of amount financed)
1.17 1.32
1.46
2.18 2.45 2.73
4.94 5.22
3.20 3.60
7.28 7.69
4.22
4.75 5.29
9.64 10.19 10.75
1.61 1.76 1.90 2.05 2.20 2.35 2.49 2.64 2.79
3.00 3.28 3.56 3.83 4.11 4.39 4.66
4.82 5.22 5.63 6.04 6.45 6.86
5.83 6.37 6.91 7.45 8.00 8.54 9.09
7.26 7.94 8.61 9.30 9.98 10.66 11.35
8.71 9.52 10.34 11.16 11.98 12.81 13.64
12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59
16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48
5.25 5.92 6.59
12.04 12.74
13.43
6.29
7.09
7.90
14.48 15.32
16.16
8.38
9.46
10.54
11.63
21.74
10.50 11.86 13.23 14.61
4.00 4.41
2.93
5.50
8.10
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