Nellie Viner saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash price $7,930 Down payment $0 Annual percentage rate 15.28% Deferred price $11.443.20 or 60 payments at $190.72 per month Required: a. Calculate the amount financed.
Nellie Viner saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash price $7,930 Down payment $0 Annual percentage rate 15.28% Deferred price $11.443.20 or 60 payments at $190.72 per month Required: a. Calculate the amount financed.
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
Related questions
Question
am. 116.
Transcribed Image Text:Nellie Viner saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had
no errors.
Cash price $7,930
Down payment $0
Annual percentage rate 15.28%
Deferred price $11,443.20 or 60 payments at $190.72 per month
Required:
a. Calculate the amount financed.
b. Calculate the finance charge.
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
c. Calculate the APR by formula.
Note: Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.
d. Calculate the monthly payment by add-on-method.
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
e. Calculate the monthly payment by formula.
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
a. Amount financed
b. Finance charge
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