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Disclosure Statement

Satisfactory Essays

No Interest, Nothing Down Read the disclosure statement found below or on the Foundations website carefully and answer the questions below. You will need a calculator to complete the activity. Upload your answers to Black Board. Furniture Store Credit Card Disclosure Statement: On approved furniture store credit card purchases—based on your credit worthiness, other terms may apply. $2,399 minimum purchase required for this offer. Other finance offers available with lower minimum payment requirements. The purchase amount is divided into equal monthly payments for the promotional period. An additional $37 will be added to the following month’s payment when payment is received after the due date. No finance charges for 24 months. 23.9% standard rate, APR. The …show more content…

In addition to the three-piece sofa set above, Kelsey and Cody also purchase a $249 coffee table and $199 end table. What is the total amount financed, including $153 for tax and $75 for delivery? The total amount that Kelsey and Cody will finance with the additional purchases will be $2773. 4. According to the conditions above, what should their monthly payment be? If Kelsey and Cody do not send their payment in on time, what will the following month’s payment be? With the conditions provided in the promotion, they will be paying $115.54 each month. If they do not pay on time they will be charged a fee and will be required to pay $152.54 the next month. 5. Kelsey and Cody have been making payments on this furniture for 18 months, but Cody gets laid off from his job and their income drops substantially. They are unable to stay current on their account, even though they have paid $2,070 of the bill. According to the above terms, what happens to their bill? When their account is not current the promotion will be cancelled and they will be charged interest on their purchase. 6. Which finance charge will apply to them? Since they defaulted on the payments they will have to pay the rate of

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