terrichichester-BU250-massage-therapy-redo

terrichichester-BU250-massage-therapy-redo - 3/20 or .15 of...

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Massage Therapy Part 1.  $7,644.25 Total price $7,644.25 0.1 multiply by 10% 764.43 $764.43 10% down payment $6,879.82 the amount financed  $325.33 monthly payment 24 multiplied by number of months $7,807.92 764.43 add the down payment $8,572.35 installment price $8,572.35 Installment price 7644.25  Subtract original total $928.10 Part 2. Interest per $100 equals finance charge/ amount financed times 100 928.10/6,879.82*100= 13.49 13.49 on table 9-1 is equal to 12.50% APR Part 3.  The rule of 78 is based on an approximation that assumes the amount financed, includ on a one year loan the sum of the digits equal 78.  on a 24 month loan the sum of the digits are 300 If it is paid off with 9 months remaining, add all the digits from 9 to 1 equals 45. 45/300 reduces to 3/20 and the decimal equivilent is .15
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Unformatted text preview: 3/20 or .15 of the total finance charge will be refunded. $928.10 0.15 $139.22 amount to be refunded if paid off with nine months rem Part 4. Date Change # of days Apr. 1-5 440 5 Apr. 6-9 240 680 4 Apr. 10-13-60 620 4 Apr. 14-19 68.45 688.45 6 Apr. 20-26 129.44 817.89 7 Apr. 27-30 25 842.89 4 Total 30 Divide sum by 30 days 20627.49/30 equals $687.58 Average daily balance APR 687.58*.015 $10.31 Interest for April Daily unpaid balanc e Amount financed $6,879.82 Total installment $7,807.92 Total Installment price $8,572.35 Finance charge $928.10 ding interest, is paid in equal parts. maining. Partial sum $2,200.00 $2,720.00 $2,480.00 $4,130.70 $5,725.23 $3,371.56 $20,627.49 18% / 12 =.18/12 =.015 monthly rate...
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This note was uploaded on 05/16/2011 for the course BUS 250 taught by Professor Barrie during the Spring '10 term at Kaplan University.

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terrichichester-BU250-massage-therapy-redo - 3/20 or .15 of...

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