Solve.

Betty Buyer purchases a stereo system for $225.00. She pays the store $25.00 down and finances the rest ($200.00). She also agrees to pay $20.00 per month for 12 months.

Her finance charge = $

APR = %

Question

Alexzander Haney

Mathematics

25 August, 00:58

Solve.

Betty Buyer purchases a stereo system for $225.00. She pays the store $25.00 down and finances the rest ($200.00). She also agrees to pay $20.00 per month for 12 months.

Her finance charge = $

APR = %

+4

Answers (1)

Know the Answer?

Ezekiel Hensley · Answer 1

finance charge: $40 APR ≈ 35.07%

Step-by-step explanation:

The amount Buyer pays for the financing is ...

($20/mo) * (12 mo) = $240

Since she is financing $200, her finance charge is ...

$240 - 200 = $40

__

The interest this represents on a loan of $200 can be found using a financial calculator or spreadsheet. It is a little more than 2.92% per month. On an annual basis, it is 35.07%.

Solve.Betty Buyer purchases a stereo system for $225.00. She pays the store $25.00 down and finances the rest ($200.00). She also agrees to pay $20.00 per month for 12 months.Her finance charge = $__APR = __%

Solve.

Betty Buyer purchases a stereo system for $225.00. She pays the store $25.00 down and finances the rest ($200.00). She also agrees to pay $20.00 per month for 12 months.

Her finance charge = $

APR = %