mberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term irchase costs $4,700, with no down payment required. Using Table 7-2 or the Garman/Forgue companion website, make the following calculations (round all intermediate calcu a. What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent. b. What are the total finance charges over that four-year period? Round your answer to the nearest dollar. c. How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent. A(n) -Select- of $ compared to the 4-year loan. d. What are the total finance charges over that three-year period? Round your answer to the nearest dollar. $ e. How would the payment change if she could afford a down payment of $400 with four years of financing? Round your answer to the nearest cent. A(n) -Select- of $ compared to the $4,700, 4-year loan.
mberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term irchase costs $4,700, with no down payment required. Using Table 7-2 or the Garman/Forgue companion website, make the following calculations (round all intermediate calcu a. What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent. b. What are the total finance charges over that four-year period? Round your answer to the nearest dollar. c. How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent. A(n) -Select- of $ compared to the 4-year loan. d. What are the total finance charges over that three-year period? Round your answer to the nearest dollar. $ e. How would the payment change if she could afford a down payment of $400 with four years of financing? Round your answer to the nearest cent. A(n) -Select- of $ compared to the $4,700, 4-year loan.
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:Monthly Payments and Finance Charges
Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. local store offered credit at an APR of 16 percent, with a maximum term f four years. The furniture she wishes to
purchase costs $4,700, with no down payment required. Using Table 7-2 or the Garman/Forgue companion website, make the following calculations (round all intermediate calculations to two decimal places):
a. What is the amount of the monthly payment if she borrowed for four years? Round your answer the nearest cent.
$
b. What are the total finance charges over that four-year period? Round your answer to the nearest dollar.
$
c. How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent.
A(n) -Select- ✔ of $
compared to the 4-year loan.
d. What are the total finance charges over that three-year period? Round your answer to the nearest dollar.
$
e. How would the payment change if she could afford a down payment of $400 with four years of financing? Round your answer to the nearest cent.
A(n) -Select- of $
compared to the $4,700, 4-year loan.
f. What are the total finance charges over that four-year period given the $400 down payment? Round your answer to the nearest dollar.
$
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