A Hepplewhite sofa costs $3,620 in cash. Jaquanna Wilson will purchase the sofa in 48 monthly installment payments. A 17% per year finance charge will be assessed on the amount financed. Find the finance charge, the installment price, and the monthly payment. The finance charge is S. (Type an integer or a decimal.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A Hepplewhite sofa costs $3,620 in cash. Jaquanna Wilson will purchase the sofa in 48 monthly installment payments. A 17% per year finance charge will be assessed
on the amount financed. Find the finance charge, the installment price, and the monthly payment.
The finance charge is $
(Type an integer or a decimal.)
Transcribed Image Text:A Hepplewhite sofa costs $3,620 in cash. Jaquanna Wilson will purchase the sofa in 48 monthly installment payments. A 17% per year finance charge will be assessed on the amount financed. Find the finance charge, the installment price, and the monthly payment. The finance charge is $ (Type an integer or a decimal.)
Expert Solution
Step 1
Cash price of computer = $ 3,620
Rate per 18 months = 0.17/12 * 48 = 68%
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