For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%. Joel financed a $1555 computer with 24 monthly payments of $70.32 each. Click the icon to view the annual percentage rate table. (a) The finance charge is $. (Round to the nearest cent as needed.) APR Table Number of Monthly Payments (n) 6 12 18 24 30 36 48 60 ... 4.0% 4.5% 5.0% Annual Percentage Rate (APR) for Monthly Payment Loans Annual Percentage Rate (APR) 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 1.17 1.32 1.46 1.61 1.76 3.00 3.28 2.18 2.45 2.73 3.60 4.00 4.22 4.75 5.29 3.20 5.63 Finance Charge per $100 of Amount Financed (h) 1.90 2.05 2.20 2.35 2.49 2.64 2.79 2.94 3.08 3.23 3.38 3.53 3.56 3.83 4.11 4.39 4.66 4.94 5.22 5.50 5.78 6.06 6.34 6.62 4.41 4.82 5.22 6.04 6.45 6.86 7.28 7.69 8.10 8.52 8.93 9.35 9.77 5.83 6.37 6.91 8.55 9.09 9.64 10.19 10.75 10.75 11.30 11.86 12.42 12.98 5.25 5.92 6.59 7.29 7.94 8.61 9.30 9.98 10.66 11.35 12.04 12.74 13.43 14.13 14.83 15.54 16.24 6.29 7.09 7.90 8.71 9.52 10.34 11.16 11.98 12.81 13.64 14.48 15.32 16.16 17.01 17.86 18.71 19.57 8.38 9.46 10.54 11.63 12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59 21.74 22.90 24.06 25.23 26.40 10.50 11.86 13.23 14.61 16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48 28.96 30.45 31.96 33.47 7.45 8.00 - X L
For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%. Joel financed a $1555 computer with 24 monthly payments of $70.32 each. Click the icon to view the annual percentage rate table. (a) The finance charge is $. (Round to the nearest cent as needed.) APR Table Number of Monthly Payments (n) 6 12 18 24 30 36 48 60 ... 4.0% 4.5% 5.0% Annual Percentage Rate (APR) for Monthly Payment Loans Annual Percentage Rate (APR) 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 1.17 1.32 1.46 1.61 1.76 3.00 3.28 2.18 2.45 2.73 3.60 4.00 4.22 4.75 5.29 3.20 5.63 Finance Charge per $100 of Amount Financed (h) 1.90 2.05 2.20 2.35 2.49 2.64 2.79 2.94 3.08 3.23 3.38 3.53 3.56 3.83 4.11 4.39 4.66 4.94 5.22 5.50 5.78 6.06 6.34 6.62 4.41 4.82 5.22 6.04 6.45 6.86 7.28 7.69 8.10 8.52 8.93 9.35 9.77 5.83 6.37 6.91 8.55 9.09 9.64 10.19 10.75 10.75 11.30 11.86 12.42 12.98 5.25 5.92 6.59 7.29 7.94 8.61 9.30 9.98 10.66 11.35 12.04 12.74 13.43 14.13 14.83 15.54 16.24 6.29 7.09 7.90 8.71 9.52 10.34 11.16 11.98 12.81 13.64 14.48 15.32 16.16 17.01 17.86 18.71 19.57 8.38 9.46 10.54 11.63 12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59 21.74 22.90 24.06 25.23 26.40 10.50 11.86 13.23 14.61 16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48 28.96 30.45 31.96 33.47 7.45 8.00 - X L
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to find the APR to the nearest 0.5%.
Joel financed a $1555 computer with 24 monthly payments of $70.32 each.
Click the icon to view the annual percentage rate table.
(a) The finance charge is $
(Round to the nearest cent as needed.)
APR Table
Number of
Monthly
Payments (n)|
6
12
18
24
30
36
48
|
60
4.0%
4.5% 5.0% 5.5%
1.17
2.18
3.20
1.32 1.46
2.45 2.73
3.60 4.00
5.29
6.59
7.90
4.22 4.75
5.25 5.92
6.29
7.09
8.38 9.46
10.54
10.50 11.86 13.23
Annual Percentage Rate (APR) for Monthly Payment Loans
Annual Percentage Rate (APR)
3.53
6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5%
Finance Charge per $100 of Amount Financed (h)
1.61 1.76 1.90 2.05 2.20 2.35 2.49 2.64 2.79 2.94 3.08 3.23 3.38
3.00 3.28 3.56 3.83 4.11 4.39 4.66 4.94 5.22 5.50 5.78 6.06 6.34 6.62
4.41 4.82 5.22 5.63 6.04 6.45 6.86 7.28
7.69 8.10 8.52 8.93 9.35 9.77
5.83 6.37 6.91 7.45 8.00 8.55 9.09 9.64 10.19
10.75 11.30 11.86 12.42 12.98
7.29
7.94 8.61 9.30 9.98 10.66 11.35 12.04 12.74 13.43 14.13 14.83 15.54 16.24
8.71 9.52 10.34 11.16 11.98 12.81 13.64 14.48 15.32 16.16 17.01 17.86 18.71 19.57
11.63 12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59 21.74 22.90 24.06 25.23 26.40
14.61 16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48 28.96 30.45 31.96 33.47
6.0%
—
10.0% 10.5% 11.0% 11.5% 12.0%
X
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