In: Finance
Chuck Boyl 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
$7,830
Down payment $0
Annual percentage rate 12.53%
Deferred price $10,824.00 or 60 payments at $180.40 per
month
a.
Calculate the amount financed.
Amount financed-
b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.)
Finance charge-
c. Calculate the APR by formula. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)
APR by formula- ___ %
d. Calculate the monthly payment by add-on-method. (Do not round intermediate calculations. Round your answer to the nearest cent.)
Monthly payment by add-on-method-
e.
Calculate the monthly payment by formula. (Do not round
intermediate calculations. Round your answer to the nearest
cent.)
Monthly payment by formula-