Time-Share Sales Provide an Opportunity for Vacationers to Own a Resort

question 77

Multiple Choice

Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more) each year forever. The owners may use their week at their own condo or trade the week and vacation elsewhere. Timeshare vacation sales usually require payment in full or financing through the time-share company, and interest rates are usually in the 13% to 18% range. Suppose the cost to buy a 1-week time share in a 3-bedroom condo is $21,100. Also suppose a 8% down payment is required, with the balance financed for 18 years at an annual rate of 13.2%, compounded monthly. Find the monthly payment. Round your answer to the nearest cent. ​

• A)$112.74
• B)$317.71
• C)$153.73
• D)$235.72
• E)$276.72

---

Definitions:

Interest Rates

For the use of assets, lenders apply a charge to borrowers, expressed as a proportion of the principal.

Nicola Pisano

A prominent Italian sculptor of the 13th century, known for his classical style and significant contributions to Gothic art.

Economic Power

The ability of a person, company, or nation to influence or control economies through wealth, production, or trade.

Political Power

The ability or capacity to influence, control, or manipulate the policies, actions, and affairs of a political entity, such as a country or city.