Loose Leaf for Personal Finance
12th Edition
ISBN: 9781259720680
Author: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 3FPC
Summary Introduction
Case summary:
S wanted to purchase a car so after looking for a perfect car for her in different showrooms, she picked one. The dealer gave her the price of $8,000. She is ready to make a down payment of $2,000 from her savings account. Sales person made a contract with all this information on it. She started to look for finance with that contract with her. She met with a banker who told her that our policy only allowed us to make loan when 20% is paid by owner, S showed the agreement and said I am ready to make 25% and that is not a problem for me. Then banker told her that we land at 20% of APR and gave her the Truth-in lending disclosure agreement. She decided to look for more option, and then she finds out that another bank is giving her loan at 20%, so she took loan from first bank.
Character in this case: S and two bankers.
Adequate information:
Price of the car is $8,000.
Down payment is $2,000.
Amount borrowed is $6,000.
APR of first bank is 15%.
APR of second bank is 20%.
Finance charge of Bank A is $1,487.64.
Finance charge of Bank B is $2,027.28.
Total of payment of Bank A is $7,487.64.
Total of payment of Bank B is $8,027.28.
Monthly payment of Bank A is $207.99.
Monthly payment of Bank A is $222.98.
To determine: The amount that S will receive from the bank.
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Chapter 7 Solutions
Loose Leaf for Personal Finance
Ch. 7 - Prob. 7.1PQ1Ch. 7 - Prob. 7.1PQ2Ch. 7 - Prob. 7.2PQ1Ch. 7 - Prob. 7.2PQ2Ch. 7 - 3. Distinguish among the adjusted balance,...Ch. 7 - Prob. 7.2PQ4Ch. 7 - Prob. 7.3PQ1Ch. 7 - Prob. 7.3PQ2Ch. 7 - Prob. 7.3PQ3Ch. 7 - Prob. 7.4PQ1
Ch. 7 - Prob. 7.4PQ2Ch. 7 - Prob. 7.4PQ3Ch. 7 - Prob. 7.5PQ1Ch. 7 - Prob. 7.5PQ2Ch. 7 - Prob. 7.5PQ3Ch. 7 - Prob. 7.5PQ4Ch. 7 - Prob. 1FPPCh. 7 - Prob. 2FPPCh. 7 - Prob. 3FPPCh. 7 - Prob. 4FPPCh. 7 - Prob. 5FPPCh. 7 - Prob. 6FPPCh. 7 - Prob. 7FPPCh. 7 - Prob. 8FPPCh. 7 - Prob. 9FPPCh. 7 - Prob. 10FPPCh. 7 - Prob. 11FPPCh. 7 - Prob. 12FPPCh. 7 - Prob. 13FPPCh. 7 - Prob. 14FPPCh. 7 - Prob. 15FPPCh. 7 - Prob. 1FPACh. 7 - Prob. 2FPACh. 7 - Prob. 3FPACh. 7 - Prob. 4FPACh. 7 - Prob. 5FPACh. 7 - Handling Harassmentfrom Debt Collection Agencies....Ch. 7 - Prob. 7FPACh. 7 - Prob. 8FPACh. 7 - Prob. 9FPACh. 7 - Prob. 1FPCCh. 7 - Prob. 2FPCCh. 7 - Prob. 3FPCCh. 7 - Prob. 1CCCh. 7 - Prob. 2CCCh. 7 - Prob. 3CCCh. 7 - Describe any aspects of your spending habits that...Ch. 7 - Prob. 2DSD
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