Calculate the finance charge

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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 $7,800

Down payment $0

Annual percentage rate 14.53%

Deferred price $11,011.80 or 60 payments at $183.53 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: EM132068123

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