HI, I would like figuring out the amount financed, total finance charge, and APR

Question

HI, I would like figuring out the amount financed, total finance charge, and APR for the problem below. I have attached the tables the problem asks to refer to below the problem. Thank you.

Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup. (Use Table 14.1 and Table 14.1(b) Purchase price of a used car $4,295 Amount financed Total of monthly payments $6,044 Total finance charge Number of paymentmonthly payments APR $85 60 (Click to select); 15.75% to 16.00% 15.50% to 15.75% 15.25% to 15.50%

Explanation / Answer

a) Finance amount = Purchase price - Down payment = $4295 - $85 = $4210

b) Total finance charges = Total of monthly payments - Total finance amount = $6044 - $4210 = $1834

c) amout financed in multiples of $100 = $4210 / $100 = 42.10

Finance charge per $100 of amount financed = $1834 / 42.10 = 43.56

We look for this value in the given table, in the 60th period/ no. of payments row -

@15.25 % - 43.53

@15.50% - 44.32

The value falls between these two rates.

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