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%. 1 years. Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 22 Click the icon to view the annual percentage rate table. (a) The finance charge is $ (Round to the nearest dollar as needed.)
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%. 1 years. Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 22 Click the icon to view the annual percentage rate table. (a) The finance charge is $ (Round to the nearest dollar as needed.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...
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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%.
1
Margey bought a new horse trailer for $5800. She paid $1000 down and paid the remainder at $174 per month for 2-
22
Click the icon to view the annual percentage rate table.
(a) The finance charge is $
(Round to the nearest dollar as needed.)
years.
Transcribed Image Text:APR Table
Number of
Monthly
Payments (n)
6
12
18
24
30
36
48
60
4.0%
4.5% 5.0%
1.17
2.18
5.5%
1.32
1.46
2.45
2.73
3.20
4.00
3.60
4.22
4.75
5.29
5.25
5.92
6.59
6.29 7.09
7.90
8.38
9.46
10.54
10.50
13.23
11.86
Annual Percentage Rate (APR) for Monthly Payment Loans
8.71
11.63
14.61
6.0%
1.76
1.61
3.28
3.00
4.41
4.82
6.37
5.83
7.29
Annual Percentage Rate (APR)
9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0%
8.0% 8.5%
6.5% 7.0% 7.5%
Finance Charge per $100 of Amount Financed (h)
2.79
2.64
2.49
2.35
2.20
2.05
3.83
4.66
4.39
4.11
4.94
5.22
5.63
6.04
6.45
6.86
8.00
7.45
8.55
10.66
13.64
12.81
9.98
9.30
2.94 3.08
5.78
5.50
8.10 8.52
7.28 7.69
11.30
9.64 10.19 10.75
9.09
14.13
12.74 13.43
11.35 12.04
17.86
17.01
16.16
15.32
14.48
20.59 21.74 22.90 24.06
27.48 28.96 30.45
11.98
11.16
14.94
16.06 17.18 18.31 19.45
20.23 21.66 23.10 24.55 26.01
18.81
1.90
3.56
5.22
6.91
7.94 8.61
9.52
10.34
12.73
13.83
16.00
17.40
3.23 3.38
6.34
6.06
8.93
11.86
14.83 15.54
18.71
25.23
26.40
31.96 33.47
3.53
6.62
9.35
12.42
9.77
12.98
16.24
19.57
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