value: 5.00 points Ramon Hernandez saw the following advertisement for a used Vo

Question

value: 5.00 points 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 $8,000 Down payment $0 Annual percentage rate 14.78% Deferred price $11,404 80 or 60 payments at $190.08 per month a. Calculate the amount financed Amount financed nearest cent) Finance change b. Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the 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

Explanation / Answer

1. Amount financed is equal to cash price = $8000

2. Finance change = Deferred Price - cash price = $11404.80 - $8000 = $3404.80

3. Using Emi formula to calculate rate APR = 14.9%

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