You work for a furniture store. You normally sell a living room set for $2,500 and...

 

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You work for a furniture store. You normally sell a living room set for $2,500 and finance the full purchase price for 30 monthly payments at 24% APR. You are planning to run a zero- interest financing sale during which you will finance the set over 30 months at 0% interest. What is the monthly payment on a zero-interest loan that you must charge during the sale in order to earn your usual combined return on the sale and the financing? You work for a furniture store. You normally sell a living room set for $2,500 and finance the full purchase price for 30 monthly payments at 24% APR. You are planning to run a zero- interest financing sale during which you will finance the set over 30 months at 0% interest. What is the monthly payment on a zero-interest loan that you must charge during the sale in order to earn your usual combined return on the sale and the financing?

Answer rating: 100% (QA)

Solution Calculate the usual combined return on the sale and financing at the original terms Original sale price 2500 Number of monthly payments 30 Annual Percentage Rate APR 24 To calculate the month... View the full answer