Answer the following questions directly on this document. Please bold or highlight your final answer.Where needed, round to the nearest cent.
To find payment amounts, you may use Excel, the EZ Calculators app, or the tables in the Chapter if those tables have the needed values. When finding an APR, give an exact value using Excel or the EZ Calculators app. Show work.
1] A cell phone has a purchase price of $299. The phone can be financed by putting $100 down and paying $20.50 a month for 12 months. Find (a) the amount financed, (b) the total monthly payments, and (c) the total finance charge.
Total selling price = $299
Down payment = $100
Amount financed = 299-100 = $199
Total monthly payments = 20.50*12 = $246
Total finance charge = 199+246 = $445
2] A used car has a purchase price of $4,195. The car can be financed by putting $95 down and making 60 monthly payments of $99. Find (a) the amount financed, and (b) the APR.
Total selling price = $4195
Down payment = $95
Amount financed = 4195-95 = $4,100
=APR (nper,pmt,pv,fv,type,guess)=(60,99,4100)= 0.1568%
3] Cody Lind purchased a used car for $14,750. He put $2,000 down and financed the rest with a 48-month, 7.5% loan. What is his monthly car payment?
Total selling price = $14,750
Down payment = $2,000
4] A used car with a price of $7,880 can be purchased for no money down by making 60 monthly payments of $185.53. Find (a) the total monthly payments, (b) the total finance charge, and (c) the APR.
Total monthly payments = 185.53*60 = $11,131.80
Total finance charge = 11131.80-7880= $3251.80
5] Jill bought a $500 rocking chair. The terms of her revolving charge are 1.5% on the unpaid balance from the previous month. If she pays $100 per month, complete a schedule for the first 3 months. Use the U.S. Rule.
Outstanding Balance Due
Amount of Monthly Payment
Reduction in Balance