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Rob wants to purchase a $5,000 drum set. The music store offers him a 2-year installment agreement requiring $800 down and monthly payments of $202.50. Rob has a poor credit rating. A. What is his interest on this installment agreement?

Rob wants to purchase a $5,000 drum set. The music store offers him a 2-year installment agreement requiring $800 down and monthly payments of $202.50. Rob has a poor credit rating. A. What is his interest on this installment agreement?

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter3: Functions And Graphs
Section3.5: Graphs Of Functions
Problem 44E
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Rob wants to purchase a $5,000 drum set. The music store offers him a 2-year installment agreement requiring $800 down and monthly payments of $202.50. Rob has a poor credit rating. A. What is his interest on this installment agreement?
E Taylc Theo O Chris G Desc G thea G thea A "TherE Taylo G Expla * Tann A HWI N x G Rob i ngage.com/static/nb/ui/evo/index.html?elSBN=9780357423516&snapshotld%-2668882&I%3D1335681442& ox (17,994) - tay. Apply to college wit. A Between the World. * NGLSync Portal Ho. É Student Score Repo. Му ВаскРасk FAFSA® Q Search thi AP Answer + 15. Rob wants to purchase a $5,000 drum set. The music store offers him a 2-year installment agreement requiring $800 down and monthly payments of $202.50. Rob has a poor credit rating. a. What is his interest on this installment agreement? b. Instead of using the store's installment plan, Rob can borrow $5,000 at an APR of 7% from a local consumer finance company. What would be the monthly payment for this loan using the table from Example 1? Round to the nearest cent. c. How much interest would the finance company charge? d. Should Rob use the installment plan or borrow the money from the finance company? 16. Lee wanted to compute the monthly payment on a 2-year, $8,400 loan at an APR of 3.07%. She entered the keystrokes at the right on her calculator. The display gives an answer of 48, which Lee knows is incorrect. Explain what her error was. Ce & @ 23 $4 8. 9. 3 4 6. e 5
Transcribed Image Text:E Taylc Theo O Chris G Desc G thea G thea A "TherE Taylo G Expla * Tann A HWI N x G Rob i ngage.com/static/nb/ui/evo/index.html?elSBN=9780357423516&snapshotld%-2668882&I%3D1335681442& ox (17,994) - tay. Apply to college wit. A Between the World. * NGLSync Portal Ho. É Student Score Repo. Му ВаскРасk FAFSA® Q Search thi AP Answer + 15. Rob wants to purchase a $5,000 drum set. The music store offers him a 2-year installment agreement requiring $800 down and monthly payments of $202.50. Rob has a poor credit rating. a. What is his interest on this installment agreement? b. Instead of using the store's installment plan, Rob can borrow $5,000 at an APR of 7% from a local consumer finance company. What would be the monthly payment for this loan using the table from Example 1? Round to the nearest cent. c. How much interest would the finance company charge? d. Should Rob use the installment plan or borrow the money from the finance company? 16. Lee wanted to compute the monthly payment on a 2-year, $8,400 loan at an APR of 3.07%. She entered the keystrokes at the right on her calculator. The display gives an answer of 48, which Lee knows is incorrect. Explain what her error was. Ce & @ 23 $4 8. 9. 3 4 6. e 5
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