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ELEN [110]
2 years ago
14

Monthly Payments and Finance Charges. Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new a

partment. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture she wishes to purchase costs $4,800, with no down payment required. Make the following calculations:
Business
1 answer:
Alenkinab [10]2 years ago
8 0

Jensen needs to pay 8691.07$ to clear off her debt at the end of 4 years

Explanation:

Step by step solution-

Details as given in the question-

Purchase cost of furniture- 4800$

Term of credit- 4 years

Annual percent rate charged- 16%

Condition- No down payment done at the beginning

Amount needed to be re-payed at the end of the credit term  

We know that

Amount= Principal*(1+rate/100) ^time (for compounded interest rate type)

Substituing the values of principal as purchase cost, rate and time

Amount= 4800*(116/100)⁴

Amount needed to be re-payed to ward off the credit = 8691.07$  

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I believe the answer is: first step, Planning Initiation

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usually this won't have an exact example to match all the requirement
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Anna opened a 100-share short position in DEF stock at the bid-ask prices of 41.10-41.20. She later added another 100 shares of
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Under normal conditions (70% probability), Plan A will produce a $20,000 higher return than Plan B. Under tight money conditions
Rom4ik [11]

Answer:

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Explanation:

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