mberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term irchase costs $4,700, with no down payment required. Using Table 7-2 or the Garman/Forgue companion website, make the following calculations (round all intermediate calcu a. What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent. b. What are the total finance charges over that four-year period? Round your answer to the nearest dollar. c. How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent. A(n) -Select- of $ compared to the 4-year loan. d. What are the total finance charges over that three-year period? Round your answer to the nearest dollar. $ e. How would the payment change if she could afford a down payment of $400 with four years of financing? Round your answer to the nearest cent. A(n) -Select- of $ compared to the $4,700, 4-year loan.

mberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term irchase costs $4,700, with no down payment required. Using Table 7-2 or the Garman/Forgue companion website, make the following calculations (round all intermediate calcu a. What is the amount of the monthly payment if she borrowed for four years? Round your answer to the nearest cent. b. What are the total finance charges over that four-year period? Round your answer to the nearest dollar. c. How would the payment change if Kimberly reduced the loan term to three years? Round your answer to the nearest cent. A(n) -Select- of $ compared to the 4-year loan. d. What are the total finance charges over that three-year period? Round your answer to the nearest dollar. $ e. How would the payment change if she could afford a down payment of $400 with four years of financing? Round your answer to the nearest cent. A(n) -Select- of $ compared to the $4,700, 4-year loan.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section: Chapter Questions

Problem 2DTM

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