Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the
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Question:
Ramon Hernandez 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 $7,880
Down payment $0
Annual Percentage Rate 14.53%
Deferred price $11,131.80 or 60 payments at $185.53 per month
a. Calculate the amount financed.
b. Calculate the finance charge.
c. Calculate the APR by table lookup.
d. Calculate the monthly payment by formula.
e. Calculate the monthly payment by table lookup at 14.50%.
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ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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