Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month. There is 2% monthly interest charge on the unpaid balance or 24% per year. The U.S. Rule is used in the calculation. At the end of month 1, the balance outstanding is: O $6,012.50 O $6,900 O $7,050 $6,912 O None of these 27 Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was: O $13,300 O $5,300 O $11,300 O $27,300 O None of these 28 Stu Reese has a $150,000 7.5% mortgage. If his monthly payment is $1,011.36. His first payment will reduce the principal to an outstanding balance of: O $149,729.40 O $149,926.14 O $72.60 O $149,910.40 3.34
Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month. There is 2% monthly interest charge on the unpaid balance or 24% per year. The U.S. Rule is used in the calculation. At the end of month 1, the balance outstanding is: O $6,012.50 O $6,900 O $7,050 $6,912 O None of these 27 Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was: O $13,300 O $5,300 O $11,300 O $27,300 O None of these 28 Stu Reese has a $150,000 7.5% mortgage. If his monthly payment is $1,011.36. His first payment will reduce the principal to an outstanding balance of: O $149,729.40 O $149,926.14 O $72.60 O $149,910.40 3.34
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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Transcribed Image Text:Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month. There is 2% monthly interest charge on the unpaid balance or
24% per year. The U.S. Rule is used in the calculation. At the end of month 1, the balance outstanding is:
O $6,012.50
O $6,900
O $7,050
$6,912
O None of these
27
Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:
O $13,300
O $5,300
O $11,300
O $27,300
O None of these
28
Stu Reese has a $150,000 7.5% mortgage. If his monthly payment is $1,011.36. His first payment will reduce the principal to an outstanding balance of:
O $149,729.40
O $149,926.14
O $72.60
O $149,910.40
3.34
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