You wish to finance the purchase of some living room furniture for $3,800. A bank offers an APR of 16.75% on a 36-month installment loan. After first using Table 13-1 from your text to find the finance charge, calculate your monthly payment.

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To calculate the monthly payment for a loan, you can use the formula for the monthly payment on an installment loan, which is the total loan amount plus finance charges divided by the number of months of the loan. However, without the specific Table 13-1 mentioned, we can't directly calculate the finance charge. Assuming a typical approach to calculating the finance charge on an installment loan (principal amount * APR * loan term in years), and then dividing the total amount (principal + finance charge) by the number of months (36), we aim for an approximation. Given the APR of 16.75% and a loan term of 36 months (or 3 years), the finance charge would significantly increase the total amount to be repaid. The option closest to a realistic monthly payment, considering a high-interest rate over a 3-year term, is $135.01, which suggests a substantial finance charge has been added to the principal amount and then divided by 36 months to find the monthly payment.

You Wish to Finance the Purchase of Some Living Room