Calculate the Amount Financed, the Finance Charge, and the Total

question 3

Short Answer

Calculate the amount financed, the finance charge, and the total deferred payment price for the following installment loan, rounding dollars to the nearest cent: $$\begin{array} { l l l l l l l } \text { Purchase } & \text { Down } & \text { Amount } & \text { Monthly } & \text { Number of } & \text { Finance } & \text { Total Deferred } \\\text { Price } & \text { Payment } & \text { Financed } & \text { Payments } & \text { Payments } & \text { Charge } & \text { Pmt Price }\\\$1و200&120&&54.00&24&&\end{array}$$

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Definitions:

Representativeness Heuristic

A mental shortcut that involves making a probability judgment by comparing an object or event to a prototype of the object or event.

Availability Heuristic

A cognitive bias that causes people to overestimate the importance of information that is readily available to them.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "I-knew-it-all-along" effect.

Confirmation Bias

The tendency to favor, interpret, and recall information in a way that confirms one's preexisting beliefs or hypotheses.