PARTIT: FIXED INSTALLMENT LOANS Recommendation: Read Sec 10.4 in the eText especially Examples 1 & 2 pages 593-596. Problem: Jeffery wants to modernize his kitchen. The cash price cost is $5500. He saved 52100 for a down payment and will finance the rest. He applies for a 48-month loan at 5.5% APR. Find the monthly payment finance charge and total installment price using BOTH METHODS Finance Charge Table Method Installment Payment Formula Method 1. Use the table to find the finance charge rate 1. Identify. Principal, P- Interest rate,r,as a decimal Number of payments per year, n = 2. Determine the number() of hundreds of Time in years, ta dollars financed Find the total finance charge 2. Use the formula to find the monthly rate of hundreds of dollars financed. payment. Write the formula with values and 1 then use calculator 3. Find the monthly payment -(finance charge principal)-(of months) 3. Find the finance charge +(monthly payment payments) principal 1 2 % 3 dollars financed Find the total finance charge rate of hundreds of dollars financed 2. Use the formula to find the monthly payment. Write the formula with values and then use calculator 3. Find the monthly payment -(finance charge principal) (of months) 3. Find the finance charge -(monthly payment payments)-principal 4. Find the total installment price - principal finance charge down payment 4. Find the total installment price = (monthly payment x payments) down pay 1 5. If you are asked to find only the finance charge, which method would you use? Why? to ! 1 2 3 Pearson elext SO SubSectors Google Maps Grammarlys) Traffic - Traffic Enfo.. ODISS Google 610 Table T. Monty Principal and interest Payment per 100 Or Mortgage Rate % 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 10 $9.65607 9.88859 10.12451 10.36384 10.60655 10.85263 11.10205 11.35480 11.61085 11.87018 12.13276 12.39857 12.66758 12.93976 13.21507 13.49350 13.77500 Number of Years 15 20 $6.90582 $5.54598 7.14883 5.79960 7.39688 6.05980 7.64993 6.32649 7.90794 6.59956 8.17083 6.87887 8.43857 7.16431 8.71107 7.45573 8.98828 7.75299 9.27012 8.05593 9.55652 8.36440 9.84740 8.67823 10.14267 8.99726 10.44225 9.32131 10.74605 9.65022 11.05399 9.98380 11.36597 10.32188 25 $4.74211 5.00624 5.27837 5.55832 5.84590 6.14087 6.44301 6.75207 7.06779 7.38991 7.71816 8.05227 8.39196 8.73697 9.08701 9.44182 9.80113 30 $4.21604 4.49045 4.77415 5.06685 5.36822 5.67789 5.99551 6.32068 6.65302 6.99215 7.33765 7.68913 8.04623 8.40854 8.77572 9.14739 9.52323 LAP43608 Dell Latitude 14 Rugged F4QWNY1 PARTIT: FIXED INSTALLMENT LOANS Recommendation: Read Sec 10.4 in the eText especially Examples 1 & 2 pages 593-596. Problem: Jeffery wants to modernize his kitchen. The cash price cost is $5500. He saved 52100 for a down payment and will finance the rest. He applies for a 48-month loan at 5.5% APR. Find the monthly payment finance charge and total installment price using BOTH METHODS Finance Charge Table Method Installment Payment Formula Method 1. Use the table to find the finance charge rate 1. Identify. Principal, P- Interest rate,r,as a decimal Number of payments per year, n = 2. Determine the number() of hundreds of Time in years, ta dollars financed Find the total finance charge 2. Use the formula to find the monthly rate of hundreds of dollars financed. payment. Write the formula with values and 1 then use calculator 3. Find the monthly payment -(finance charge principal)-(of months) 3. Find the finance charge +(monthly payment payments) principal 1 2 % 3 dollars financed Find the total finance charge rate of hundreds of dollars financed 2. Use the formula to find the monthly payment. Write the formula with values and then use calculator 3. Find the monthly payment -(finance charge principal) (of months) 3. Find the finance charge -(monthly payment payments)-principal 4. Find the total installment price - principal finance charge down payment 4. Find the total installment price = (monthly payment x payments) down pay 1 5. If you are asked to find only the finance charge, which method would you use? Why? to ! 1 2 3 Pearson elext SO SubSectors Google Maps Grammarlys) Traffic - Traffic Enfo.. ODISS Google 610 Table T. Monty Principal and interest Payment per 100 Or Mortgage Rate % 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 10 $9.65607 9.88859 10.12451 10.36384 10.60655 10.85263 11.10205 11.35480 11.61085 11.87018 12.13276 12.39857 12.66758 12.93976 13.21507 13.49350 13.77500 Number of Years 15 20 $6.90582 $5.54598 7.14883 5.79960 7.39688 6.05980 7.64993 6.32649 7.90794 6.59956 8.17083 6.87887 8.43857 7.16431 8.71107 7.45573 8.98828 7.75299 9.27012 8.05593 9.55652 8.36440 9.84740 8.67823 10.14267 8.99726 10.44225 9.32131 10.74605 9.65022 11.05399 9.98380 11.36597 10.32188 25 $4.74211 5.00624 5.27837 5.55832 5.84590 6.14087 6.44301 6.75207 7.06779 7.38991 7.71816 8.05227 8.39196 8.73697 9.08701 9.44182 9.80113 30 $4.21604 4.49045 4.77415 5.06685 5.36822 5.67789 5.99551 6.32068 6.65302 6.99215 7.33765 7.68913 8.04623 8.40854 8.77572 9.14739 9.52323 LAP43608 Dell Latitude 14 Rugged F4QWNY1