table lookup d the monthly payment by formula and e the mont

table lookup. (d) the monthly payment by formula, and (e) the monthly VOLKSWAGEN BUG $185,53 e. APR by table lookup $7,880 e. Monthly payment by table lookup (use 14.50%): mount Financed $788000 at 14.53 annual $3,251.80 rate. Finance

Solution

a) Calculate the amount financed. Amount financed $7,880.00 b) Calculate the finance charge. (Do not round intermediate calculations. Round your answer to the nearest cent.) Finance change $3,251.80 c) Divide the finance charge by amount financed and multiply by $100 to get the tablelookup factor Table lookup factor = $7880/$3251.80 x 100 41.27 Between 14.25% - 14.50% d) Monthly Payment = Finance charge + Amount financed/Number of payments of loan Monthly Payment = ($3251.80 + $7880)/60 $185.53 e) Monthly Payment by table lookup using 14.50% Step 1 Look up the rate (14.5%) and the number of months (60). At the intersection is the table factor showing the monthly payment per $1,000 $23.53 Step 2 Divide the loan amount by $1,000 = $7880/1000 7.88 Multiply the quotient in Step 1 by the factor in Step 2 $185.40