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Business Mathematics 14th Edition Solution Manual Chapter 1 - 16 Updated 2023, all bundled to boost and ease your study, graded a+, guaranteed pass$12.49
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Business Mathematics 14th Edition Solution
Manual Chapter 1 - 16 Updated 2023, all bundled
to boost and ease your study, graded a+,
guaranteed pass
Nicolas signed an installment agreement to borrow $1,000 for 3 years to be paid back monthly. The cost
of the loan is $195.56. What is the APR? - ANSWER Amount Financed: $1,000
Time: 3 Years, paid back monthly
Cost of Loan: $195.56
Finance Charge / Amount Financed =
$195.56 / $1,000 = 19.56
Table factor of 19.56 at 36 periods = 12% APR
Calculating APR by Table - ANSWER 1. Divide the finance charge by amount financed and multiply by
$100 to get the table lookup factor.
2. Go to APR Table 14.1 At the left of the table are listed the number of payments that will be made.
3. When you find the number of payments you are looking for, move to the right and look for the two
numbers closest to the table lookup number. This will indicate the APR.
Installment buying - ANSWER A form of Closed-End Credit, can add a substantial amount to the cost of
big-ticket purchases.
down payment - ANSWER Amount of initial cash payment made when item is purchased
, installment loan - ANSWER Loan paid off with a series of equal periodic payments
amortization - ANSWER process of paying back a loan (principal plus interest) by equal periodic
payments.
Calculating Finance Charge: - ANSWER Total Finance Charge (Interest Charge) = Total of all Monthly
payments - Amount Financed
Calculating APR by Formula - ANSWER Finance Charge + Amount financed / Number of payments of loan
Alexander was charged $2,390 to borrow $10,000. This is to be paid back monthly over 5 years. What is
his monthly payment? - ANSWER Loan Amount: $10,000
Cost of loan: $2,390
Time: 5 Years x 12 Months = 60 Payments
$12, = $206.50
The largest amount of installment loan interest is charged during the _______ part of the loan. -
ANSWER Earlier
Purchasing goods on installment substantially ______ the overall cost of the purchase. - ANSWER raises
Amortization is the: - ANSWER process of paying off an installment loan in a series of equal payments
consisting of both principal and interest.
An installment loan is: - ANSWER a loan paid off in a series of equal payments.
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