Jennifer wants to buy some furniture for her new apartment. A shop offered credit at an APR of 16 percent with a maximum term of four years. The furniture she wishes to purchase costs $2800, with no down payment required.
(1) What is the amount of the monthly payment if she borrowed for four years?
(2) What are the total finance charges over that four- year period?
(3) How would the payment change if Jennifer reduced the loan term to three years?
(4) What are the total finance charges over that three- year period?
(5) How would the payment change if she could afford a down payment of $500 with four years of financing?
(6) What are the total finance charges over that four- year period given the $500 down payment?