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 %