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Unit 5: Consumer Credit  Project
You must show your work on all problems.
You may type your answer right into
this document. Total points for project:
45 Points.
Projects must be submitted as a Microsoft Word document and uploaded to the
Dropbox for Unit 1
.
All Projects are due by Tuesday at 11:59 PM ET of the
assigned Unit.
NOTE:
Project problems should not be posted to the Discussion threads.
Questions on the project problems should be addressed to the instructor by
sending an email or by attending office hours.
Part I.
Basic Computations
1.
The Morrison family bought a car for $22,000
was which was financed at
$600 per month for 40 months.
The down payment was $3000.
a.
What is the Installment Price? (5 Points)
Answer: $600x44=$26,400, So $26,400+$3,000=
$29,400 as installment
price.
b.
What is the financial charge and amount financed? (5 Points)
Answer: $26,400$22,000=
$4,400 is finance charge.
$22,000$3,000=
$19,000 is the amount financed.
2.
Jason’s credit card’s beginning unpaid balance for August is $2,000. During
the August billing cycle he made a payment of $200 and used card to purchase
$50 worth of grocery.
Credit card charges 24% annual percentage rate and
uses the unpaid balance method.
a. What is the finance charge at the end of August? (5 Points)
Answer: $2,000+$50$200= $1850
Monthly charge is 24%/12=2%, So $1,850x.02=
$37 is the finance
charge at the end of August.
b. What is the new balance at the end of August? (5 Points)
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This note was uploaded on 05/31/2011 for the course CM 105 taught by Professor Klipsch during the Spring '09 term at Kaplan University.
 Spring '09
 kLIPSCH

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