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Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598 Exercise 39
Consider the following flyer that you just received.
"We have good news, Eric Moon! Your credit history allows us to offer you a guaranteed check of $2,009.06. That's right-a preapproved loan just in time to help with your vacation! It's easy Just endorse the attached loan check and deposit it in your bank account. Your payment schedule will be 18 equal monthly payments of $150 each, beginning 30 days alter your depositing the check in your bank account."
(a) Determine the annual percentage of this loan solicitation.
(b) What would be the finance charge (dollar amount the credit will cost you)
(c) Suppose you have a credit card. Is it better by doing a cash advance in the amount of $2,009.06 on your credit card Your credit company charges APR of 24.99% for cash advances. Determine the annual percentage rate (APR) of this loan solicitation.
(d) Suppose that you decided to go with a cash advance by making $50 monthly payment until you pay off the loan. What would be the total finance (interest) charge (dollar amount the credit will cost you) for each option
"We have good news, Eric Moon! Your credit history allows us to offer you a guaranteed check of $2,009.06. That's right-a preapproved loan just in time to help with your vacation! It's easy Just endorse the attached loan check and deposit it in your bank account. Your payment schedule will be 18 equal monthly payments of $150 each, beginning 30 days alter your depositing the check in your bank account."
(a) Determine the annual percentage of this loan solicitation.
(b) What would be the finance charge (dollar amount the credit will cost you)
(c) Suppose you have a credit card. Is it better by doing a cash advance in the amount of $2,009.06 on your credit card Your credit company charges APR of 24.99% for cash advances. Determine the annual percentage rate (APR) of this loan solicitation.
(d) Suppose that you decided to go with a cash advance by making $50 monthly payment until you pay off the loan. What would be the total finance (interest) charge (dollar amount the credit will cost you) for each option
Explanation
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Contemporary Engineering Economics 6th Edition by Chan Park
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