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Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors.
Cash price $7,950
Down payment $0
Annual percentage rate 14.53%
Deferred price $11,223.60 or 60 payments at $187.06 per month
a. Calculate the amount financed.
Amount financed $
b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.)
Finance change $
c. Calculate the APR by formula. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)
APR by formula %
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