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Meghan Pease purchased a small sailboat for $8,350. She made down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %

Meghan Pease purchased a small sailboat for $8,350. She made down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %

Essentials Of Investments
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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Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %
Transcribed Image Text:Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %
ANNUAL PERCENTAGE RATE NUMBER OF PAYMENTS 10.00% 10.25% 10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50% 12.75% 13.00% 13.25% 13.50% 13.75% (FINANCE CHARGE PER $100 OF AMOUNT FINANCED) 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.15 1.44 1.47 1.50 1.53 1.57 1.60 1.63 1.66 1.69 1.92 1.96 2.01 2.05 2.09 2.41 2.46 2.51 2,57 2.62 2.89 2.96 3.02 3.08 3.15 2.94 3.01 3.08 3.16 3.23 3.31 3.38 3.45 3.53 3.60 3.68 3.75 3.83 3.90 3.36 3.45 3.53 3.62 3.70 3.78 3.87 3.95 4.04 4.12 4.21 4.29 4.38 4.47 3.79 3.88 3.98 4.07 4.17 4.26 4.36 4.46 4.55 4.65 4.74 4.84 4.94 5.03 5.13 4.21 4.32 4.43 4.53 4.64 4.75 4.85 4.96 5.07 5.17 5.28 5.39 5.49 5.60 5.71 4.76 4.88 4.99 5.11 5.23 5.35 5.46 5.58 5.70 5.82 5.94 6.05 6.17 6.29 1.72 2.30 2.88 3.46 2.13 2.17 2.22 2.26 2.67 2.72 2.78 2.83 3.21 3.27 3.34 3.40 3.97 4.05 4.55 4.64 5.22 5.82 4.64 6.41 1234 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 我 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 0.83 0.85 1.25 1.28 1.67 1.71 2.09 2.14 2.51 2.58 0.87 0.90 1.31 1.35 1.76 1.80 2.20 2.64 2.25 2.30 2.70 2.77 0.92 0.94 1.38 1.41 1.84 1.88 2.35 2.83 5.07 5.20 5.33 5.45 5.58 5.71 5.84 5.50 5.64 5.78 5.92 6.06 6.20 6.34 5.93 6.08 6.23 6.38 6.53 6.68 6.84 6.36 6.52 6.69 6.85 7.01 7.17 7.34 6.80 6.97 7.14 7.32 7.49 7.66 7.84 7.23 7.41 7.60 7.78 7.97 8.15 8.34 8.53 8.71 8.90 7.67 7.86 8.06 8.25 8.45 8.65 8.84 9.04 9.24 9.44 8.10 8.31 8.52 8.73 8.93 9.14 9.35 9.56 9.77 9.98 9.20 9.42 9.64 9.86 10.08 10.30 10.52 10.13 10.37 10.60 8.54 8.76 8.98 8.98 9.21 9.44 9.67 9.90 10.83 11.06 11.64 11.94 12.24 12.54 12.09 12.40 12.71 13.03 12.53 12.86 13.18 13.51 12.98 13.32 13.66 14.00 13.43 13.78 14.13 14.48 5.97 6.10 6.23 6.36 6.49 6.62 6.48 6.62 6.76 6.90 7.04 7.18 6.99 7.14 7.29 7.44 7.59 7.75 7.50 7.66 7.82 7.99 8.15 8.31 8.01 8.19 8.36 8.53 8.71 8.88 13.89 14.25 14.61 14.97 15.33 15.70 14.34 14.71 15.09 15.46 15.84 16.21 14.79 15.18 15.57 15.95 16.34 16.73 15.25 15.65 16.05 16.44 16.85 17.25 15.70 16.11 16.53 16.94 17.35 17.77 18.47 18.95 19.44 19.93 18.93 19.43 19.93 20.43 19.40 19.91 20.42 20.94 19.86 20.39 20.91 21.44 20.33 20.87 21.41 21.95 9.42 9.66 9.90 10.15 10.39 10.63 10.88 11.12 11.36 11.61 11.85 12.10 12.34 12.59 12.84 13.08 9.86 10.12 10.37 10.62 10.88 11.13 11.39 11.64 11.90 12.16 12.41 12.67 12.93 13.19 13.44 13.70 10.30 10.57 10.84 11.10 11.37 11.63 11.90 12.17 12.44 12.71 12.97 13.24 13.51 13.78 14.05 14.32 10.75 11.02 11.30 11.58 11.86 12.14 12.42 12.70 12.98 13.26 13.54 13.82 14.10 14.38 14.66 14.95 11.19 11.48 11.77 12.06 12.35 12.64 12.93 13.22 13.52 13.81 14.10 14.40 14.69 14.98 15.28 15.57 16.06 16.43 16.59 16.97 17.12 17.51 17.65 18.05 18.18 18.60 16.16 16.58 17.01 17.43 17.86 18.29 18.71 19.14 16.62 17.06 17.49 17.93 18.37 18.81 19.25 19.69 17.08 17.53 17.98 18.43 18.88 19.33 19.78 20.24 17.54 18.00 18.46 18.93 19.39 19.86 20.32 20.79 18.00 18.48 18.95 19.43 19.90 20.38 20.86 21.34 12.85 13.15 13.45 13.75 14.06 14.36 14.67 14.97 15.28 15.59 15.89 13.34 13.66 13.97 14.29 14.60 14.92 15.24 15.56 15.87 16.19 16.51 13.84 14.16 14.49 14.82 15.15 15.48 15.81 16.14 16.47 16.80 17.13 14.33 14.67 15.01 15.35 15.70 16.04 16.38 16.72 17.07 17.41 17.75 14.83 15.19 15.54 15.89 16.24 16.60 16.95 17.31 17.66 18.02 18.38 9.08 9.27 9.46 9.63 9.83 10.03 10.19 10.40 10.61 10.74 10.96 11.18 11.30 11.53 11.76 6.75 6.88 7.01 7.32 7.46 7.60 7.90 8.05 8.20 8.48 8.64 8.B1 9.06 9.23 9.41 9.64 9.83 10.02 10.23 10.43 10.63 10.82 11.03 11.24 11.41 11.63 11.85 12.00 12.23 12.46 23.16 23.78 24.40 25.02 25.64 26.26 26.89 27.52 23.64 24.27 24.90 25.53 26.17 26.81 27.45 28.09 24.11 24.76 25.40 26.05 26.70 24.59 25.25 25.91 26.57 27.23 25.07 25.74 26.41 27.09 27.77 19.00 16.79 17.16 17.53 17.90 18.27 18.63 17.35 17.73 18.11 18.49 18.87 19.25 19.63 17.90 18.29 18.69 19.08 19.47 19.87 20.26 19.27 19.67 20.08 20.49 20.90 19.85 20.27 20.69 21.11 21.53 18.46 18.86 19.01 19.43 20.80 21.35 21.90 22.46 23.01 23.57 24.13 24.69 25.25 21.27 21.83 22.40 22.97 23.53 24.10 24.68 25.25 21.74 22.32 22.90 23.48 24.06 24.64 25.23 25.81 22.21 22.80 23.39 23.99 24.58 25.18 25.78 26.38 22.69 23.29 23.89 24.50 25.11 25.72 26.33 26.95 16.20 16.83 17.46 18.10 18.74 19.38 20.02 20.66 21.31 21.95 22.60 19.57 20.00 20.43 20.87 21.30 21.73 22.17 20.13 20.58 21.02 21.46 21.91 22.36 22.81 23.25 20.69 21.15 21.61 22.07 22.52 22.99 23.45 23.91 21.26 21.73 22.20 22.67 23.14 23.61 24.09 24.56 21.82 22.30 22.79 23.27 23.76 24.25 24.73 25.22 20.42 20.91 21.40 21.89 22.39 22.88 23.38 23.88 24.38 24.88 25.38 25.88 20.93 21.44 21.94 22.45 22.96 23.47 23.98 24.49 25.00 25.51 26.03 26.55 21.45 21.97 22.49 23.01 23.53 24.05 24.57 25.10 25.62 26.15 26.6A 27.21 21.97 22.50 23.03 23.57 24.10 24.64 25.17 25.71 26.25 26.79 27.33 22.49 23.03 23.58 24.12 24.67 25.22 25.77 26.32 26.88 27.43 27.99 27.88 28.55 25.81 26.37 26.94 27.51 28.08 28.65 29.22 25.82 26.40 26.98 27.56 28.14 28.72 29.31 29.89 26.40 26.99 27.58 28.18 28.77 29.37 29.97 30.57 26.98 27.59 28.19 28.80 29.41 30.02 30.63 31.24 27.56 28.18 28.80 29.42 30.04 30.67 31.29 31.92 28.15 28.78 29.41 30.05 30.68 31.32 31.96 32.60 28.73 29.38 30.02 30.67 31.32 31.98 32.63 33.29 27.35 28.00 28.66 29.32 29.98 30.64 31.30 31.97 32.63 33.30 33.97 27.90 28.56 29.23 29.91 30.58 31.25 31.93 32.61 33.29 33.98 34.66 28.44 29.13 29.81 30.50 31.18 31.87 32.56 33.26 33.95 .65 35.35 25.55 26.23 26.92 27.61 28.30 28.99 29.69 30.39 31.09 31.79 32.49 33.20 33.91 34.62 35.33 36.04 26.03 26.73 27.43 28.13 28.84 29.54 30.25 30.97 31.68 32.39 33.11 33.83 34.56 35.28 36.01 36.74 26.51 27.23 27.94 28.66 29.37 30.10 30.82 31.55 32.27 33.00 33.74 34.47 35.21 35.95 36.69 37.43 27.00 27.72 28.45 29.18 29.91 30.65 31.39 32.13 32.87 33.61 34.36 35.11 35.86 36.62 37.37 38.13 29.71 30.45 31.20 31.96 32.71 33.47 34.23 34.99 35.75 36.52 37.29 38.06 38.83 27.48 28.22 28.96
Transcribed Image Text:ANNUAL PERCENTAGE RATE NUMBER OF PAYMENTS 10.00% 10.25% 10.50% 10.75% 11.00% 11.25% 11.50% 11.75% 12.00% 12.25% 12.50% 12.75% 13.00% 13.25% 13.50% 13.75% (FINANCE CHARGE PER $100 OF AMOUNT FINANCED) 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.15 1.44 1.47 1.50 1.53 1.57 1.60 1.63 1.66 1.69 1.92 1.96 2.01 2.05 2.09 2.41 2.46 2.51 2,57 2.62 2.89 2.96 3.02 3.08 3.15 2.94 3.01 3.08 3.16 3.23 3.31 3.38 3.45 3.53 3.60 3.68 3.75 3.83 3.90 3.36 3.45 3.53 3.62 3.70 3.78 3.87 3.95 4.04 4.12 4.21 4.29 4.38 4.47 3.79 3.88 3.98 4.07 4.17 4.26 4.36 4.46 4.55 4.65 4.74 4.84 4.94 5.03 5.13 4.21 4.32 4.43 4.53 4.64 4.75 4.85 4.96 5.07 5.17 5.28 5.39 5.49 5.60 5.71 4.76 4.88 4.99 5.11 5.23 5.35 5.46 5.58 5.70 5.82 5.94 6.05 6.17 6.29 1.72 2.30 2.88 3.46 2.13 2.17 2.22 2.26 2.67 2.72 2.78 2.83 3.21 3.27 3.34 3.40 3.97 4.05 4.55 4.64 5.22 5.82 4.64 6.41 1234 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 我 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 0.83 0.85 1.25 1.28 1.67 1.71 2.09 2.14 2.51 2.58 0.87 0.90 1.31 1.35 1.76 1.80 2.20 2.64 2.25 2.30 2.70 2.77 0.92 0.94 1.38 1.41 1.84 1.88 2.35 2.83 5.07 5.20 5.33 5.45 5.58 5.71 5.84 5.50 5.64 5.78 5.92 6.06 6.20 6.34 5.93 6.08 6.23 6.38 6.53 6.68 6.84 6.36 6.52 6.69 6.85 7.01 7.17 7.34 6.80 6.97 7.14 7.32 7.49 7.66 7.84 7.23 7.41 7.60 7.78 7.97 8.15 8.34 8.53 8.71 8.90 7.67 7.86 8.06 8.25 8.45 8.65 8.84 9.04 9.24 9.44 8.10 8.31 8.52 8.73 8.93 9.14 9.35 9.56 9.77 9.98 9.20 9.42 9.64 9.86 10.08 10.30 10.52 10.13 10.37 10.60 8.54 8.76 8.98 8.98 9.21 9.44 9.67 9.90 10.83 11.06 11.64 11.94 12.24 12.54 12.09 12.40 12.71 13.03 12.53 12.86 13.18 13.51 12.98 13.32 13.66 14.00 13.43 13.78 14.13 14.48 5.97 6.10 6.23 6.36 6.49 6.62 6.48 6.62 6.76 6.90 7.04 7.18 6.99 7.14 7.29 7.44 7.59 7.75 7.50 7.66 7.82 7.99 8.15 8.31 8.01 8.19 8.36 8.53 8.71 8.88 13.89 14.25 14.61 14.97 15.33 15.70 14.34 14.71 15.09 15.46 15.84 16.21 14.79 15.18 15.57 15.95 16.34 16.73 15.25 15.65 16.05 16.44 16.85 17.25 15.70 16.11 16.53 16.94 17.35 17.77 18.47 18.95 19.44 19.93 18.93 19.43 19.93 20.43 19.40 19.91 20.42 20.94 19.86 20.39 20.91 21.44 20.33 20.87 21.41 21.95 9.42 9.66 9.90 10.15 10.39 10.63 10.88 11.12 11.36 11.61 11.85 12.10 12.34 12.59 12.84 13.08 9.86 10.12 10.37 10.62 10.88 11.13 11.39 11.64 11.90 12.16 12.41 12.67 12.93 13.19 13.44 13.70 10.30 10.57 10.84 11.10 11.37 11.63 11.90 12.17 12.44 12.71 12.97 13.24 13.51 13.78 14.05 14.32 10.75 11.02 11.30 11.58 11.86 12.14 12.42 12.70 12.98 13.26 13.54 13.82 14.10 14.38 14.66 14.95 11.19 11.48 11.77 12.06 12.35 12.64 12.93 13.22 13.52 13.81 14.10 14.40 14.69 14.98 15.28 15.57 16.06 16.43 16.59 16.97 17.12 17.51 17.65 18.05 18.18 18.60 16.16 16.58 17.01 17.43 17.86 18.29 18.71 19.14 16.62 17.06 17.49 17.93 18.37 18.81 19.25 19.69 17.08 17.53 17.98 18.43 18.88 19.33 19.78 20.24 17.54 18.00 18.46 18.93 19.39 19.86 20.32 20.79 18.00 18.48 18.95 19.43 19.90 20.38 20.86 21.34 12.85 13.15 13.45 13.75 14.06 14.36 14.67 14.97 15.28 15.59 15.89 13.34 13.66 13.97 14.29 14.60 14.92 15.24 15.56 15.87 16.19 16.51 13.84 14.16 14.49 14.82 15.15 15.48 15.81 16.14 16.47 16.80 17.13 14.33 14.67 15.01 15.35 15.70 16.04 16.38 16.72 17.07 17.41 17.75 14.83 15.19 15.54 15.89 16.24 16.60 16.95 17.31 17.66 18.02 18.38 9.08 9.27 9.46 9.63 9.83 10.03 10.19 10.40 10.61 10.74 10.96 11.18 11.30 11.53 11.76 6.75 6.88 7.01 7.32 7.46 7.60 7.90 8.05 8.20 8.48 8.64 8.B1 9.06 9.23 9.41 9.64 9.83 10.02 10.23 10.43 10.63 10.82 11.03 11.24 11.41 11.63 11.85 12.00 12.23 12.46 23.16 23.78 24.40 25.02 25.64 26.26 26.89 27.52 23.64 24.27 24.90 25.53 26.17 26.81 27.45 28.09 24.11 24.76 25.40 26.05 26.70 24.59 25.25 25.91 26.57 27.23 25.07 25.74 26.41 27.09 27.77 19.00 16.79 17.16 17.53 17.90 18.27 18.63 17.35 17.73 18.11 18.49 18.87 19.25 19.63 17.90 18.29 18.69 19.08 19.47 19.87 20.26 19.27 19.67 20.08 20.49 20.90 19.85 20.27 20.69 21.11 21.53 18.46 18.86 19.01 19.43 20.80 21.35 21.90 22.46 23.01 23.57 24.13 24.69 25.25 21.27 21.83 22.40 22.97 23.53 24.10 24.68 25.25 21.74 22.32 22.90 23.48 24.06 24.64 25.23 25.81 22.21 22.80 23.39 23.99 24.58 25.18 25.78 26.38 22.69 23.29 23.89 24.50 25.11 25.72 26.33 26.95 16.20 16.83 17.46 18.10 18.74 19.38 20.02 20.66 21.31 21.95 22.60 19.57 20.00 20.43 20.87 21.30 21.73 22.17 20.13 20.58 21.02 21.46 21.91 22.36 22.81 23.25 20.69 21.15 21.61 22.07 22.52 22.99 23.45 23.91 21.26 21.73 22.20 22.67 23.14 23.61 24.09 24.56 21.82 22.30 22.79 23.27 23.76 24.25 24.73 25.22 20.42 20.91 21.40 21.89 22.39 22.88 23.38 23.88 24.38 24.88 25.38 25.88 20.93 21.44 21.94 22.45 22.96 23.47 23.98 24.49 25.00 25.51 26.03 26.55 21.45 21.97 22.49 23.01 23.53 24.05 24.57 25.10 25.62 26.15 26.6A 27.21 21.97 22.50 23.03 23.57 24.10 24.64 25.17 25.71 26.25 26.79 27.33 22.49 23.03 23.58 24.12 24.67 25.22 25.77 26.32 26.88 27.43 27.99 27.88 28.55 25.81 26.37 26.94 27.51 28.08 28.65 29.22 25.82 26.40 26.98 27.56 28.14 28.72 29.31 29.89 26.40 26.99 27.58 28.18 28.77 29.37 29.97 30.57 26.98 27.59 28.19 28.80 29.41 30.02 30.63 31.24 27.56 28.18 28.80 29.42 30.04 30.67 31.29 31.92 28.15 28.78 29.41 30.05 30.68 31.32 31.96 32.60 28.73 29.38 30.02 30.67 31.32 31.98 32.63 33.29 27.35 28.00 28.66 29.32 29.98 30.64 31.30 31.97 32.63 33.30 33.97 27.90 28.56 29.23 29.91 30.58 31.25 31.93 32.61 33.29 33.98 34.66 28.44 29.13 29.81 30.50 31.18 31.87 32.56 33.26 33.95 .65 35.35 25.55 26.23 26.92 27.61 28.30 28.99 29.69 30.39 31.09 31.79 32.49 33.20 33.91 34.62 35.33 36.04 26.03 26.73 27.43 28.13 28.84 29.54 30.25 30.97 31.68 32.39 33.11 33.83 34.56 35.28 36.01 36.74 26.51 27.23 27.94 28.66 29.37 30.10 30.82 31.55 32.27 33.00 33.74 34.47 35.21 35.95 36.69 37.43 27.00 27.72 28.45 29.18 29.91 30.65 31.39 32.13 32.87 33.61 34.36 35.11 35.86 36.62 37.37 38.13 29.71 30.45 31.20 31.96 32.71 33.47 34.23 34.99 35.75 36.52 37.29 38.06 38.83 27.48 28.22 28.96
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