Consider the following flyer that you just received. “We have good news. Eric Moon! Your credit history allows us to offer you a guaranteed check of $2,009.06. That’s right—a preapproved loan just in time to help with your vacation! It’s easy. Just endorse the attached loan check and deposit it in your bank account. Your payment schedule will be 18 equal monthly payments of $150 each, beginning 30 days after your depositing the check in your bank account.”
(a) Determine the annual percentage of this loan solicitation.
(b) What would be the finance charge (dollar amount the credit will cost you)?
(c) Suppose you have a credit card. Is it better by doing a cash advance in the amount of $2,009.06 on your credit card? Your credit company charges APR of 24.99% for cash advances. Determine the annual percentage rate (APR) of this loan solicitation.
(d) Suppose that you decided to go with a cash advance by making $50 monthly payment until you pay off the loan. What would be the total finance (interest) charge (dollar amount the credit will cost you) for each option?

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Credit Card Auto Loan Home Improvement Loan Current Home Mortgage Total Current Debt New Homeowner's Bill Consolidation Loan Interest Rate 21% 8% 10% 8% 6% Monthly savings Outstanding Balance $12,000 $15,000 $23,000 $170,000 $220,000 $220,000 Monthly Payment $448.62 $359.20 $488.68 $1,247.40 $2,543.90 $1,319.02 $1,224.88