What are total finance charges over that four year period

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Reference no: EM131458368

Jennifer wants to buy some furniture for her new apartment. A shop offered credit at an APR of 16 percent with a maximum term of four years. The furniture she wishes to purchase costs $2800, with no down payment required.

(1) What is the amount of the monthly payment if she borrowed for four years?

(2) What are the total finance charges over that four- year period?

(3) How would the payment change if Jennifer reduced the loan term to three years?

(4) What are the total finance charges over that three- year period?

(5) How would the payment change if she could afford a down payment of $500 with four years of financing?

(6) What are the total finance charges over that four- year period given the $500 down payment?

Reference no: EM131458368

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