Calculate the apr by formula

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Reference no: EM132068113

Question: 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 %

Reference no: EM132068113

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