Pete Size Read the Following Partial Advertisement: Price $20,999; Down

question 51

Short Answer

Pete Size read the following partial advertisement: Price $20,999; down payment $1,000; cash or trade; $390.85 per month for 60 months. Calculate (A)the total finance charge and (B)the APR by table lookup.

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Definitions:

Annual Interest

The amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.

Montreal Bond Market

A marketplace for the trading of bonds issued within or by entities located in Montreal, Canada, or related to its economy.

Liquidity

The measure of how easily assets can be converted into cash with little impact on their value; crucial for the smooth operation of financial markets.

Smaller Corporation

A smaller-sized company with lower revenue and fewer employees compared to larger corporations within the same industry.