First America Bank's monthly payment charge on a 48-month, $15,000 loan is $428.26. The U.S. Bank's monthly payment fee is $437.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? (Use Table 14.1.) Note: Round your final answers to the nearest hundredth percent. First America Bank U.S. Bank between between APR % % and and % %
First America Bank's monthly payment charge on a 48-month, $15,000 loan is $428.26. The U.S. Bank's monthly payment fee is $437.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? (Use Table 14.1.) Note: Round your final answers to the nearest hundredth percent. First America Bank U.S. Bank between between APR % % and and % %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:First America Bank's monthly payment charge on a 48-month, $15,000 loan is $428.26. The U.S. Bank's monthly payment fee is
$437.70 for the same loan amount.
What would be the APR for an auto loan for each of these banks? (Use Table 14.1.)
Note: Round your final answers to the nearest hundredth percent.
First America Bank
U.S. Bank
between
between
APR
%
%
and
and
%
%
Transcribed Image Text:TABLE 14.1
NUMBER
OF
PAYMENTS 10.00%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
0.83
1.25
1.67
2.09
2.51
2.94
3.36
3.79
4.21
4.64
5.07
5.50
5.93
6.36
6.80
7.23
7.67
8.10
8.54
8.98
9.42
9.86
10.30
10.75
11.19
11.64
12.09
12.53
12.98
13.43
13.89
14.34
14.79
15.25
15.70
16.16
12.09
12.53
12.98
13.43
13.89
14.34
14.79
15.25
15.70
16.16
16.62
17.08
17.54
18.00
18.47
18.93
19.40
19.86
20.33
20.80
21.27
21.74
22.21
22.69
23.16
23.64
24.11
24.59
25.07
25.55
26.03
26.51
27.00
27.48
10.251% 10.50%
0.85
1.28
1.71
2.14
2.58
3.01
3.45
3.88
4.32
4.76
5.20
5.64
6.08
6.52
6.97
7.41
7.86
8.31
8.76
9.21
9.66
10.12
10.57
11.02
11.48
11.94
12.40
12.86
13.32
13.78
14.25
14.71
15.18
15.65
16.11
16.58
12.40
12.86
13.32
13.78
14.25
14.71
15.18
15.65
16.11
16.58
17.06
11.53
18.00
18.48
18.95
19.43
19.91
20.39
20.87
21.35
21.83
22.32
22.80
23.29
23.78
24.27
24.16
25.25
25.74
26.23
26.73
27.23
27.72
28.22
0.87
1.31
1.76
2.20
2.64
3.08
3.53
3.98
4.43
4.88
5.33
5.78
6.23
6.69
7.14
7.60
8.06
8.52
8.98
9.44
9.90
10.37
10.84
11.30
11.77
12.24
12.71
13.18
13.66
14.13
14.61
15.09
15.57
16.05
16.53
17.01
12.71
13.18
13.66
14.13
14.61
15.09
15.57
16.05
16.53
17.01
17.49
17.98
18.46
18.95
19.44
19.93
20.42
20.91
21.41
21.90
22.40
22.90
23.39
23.89
24.40
24.90
25.40
25.91
26.41
26.92
27.43
27.94
28.45
28.96
10.75%
0.90
1.35
1.80
2.25
2.70
3.16
3.62
4.07
4.53
4.99
5.45
5.92
6.38
6.85
7.32
7.78
8.25
8.73
9.20
9.67
10.15
10.62
11.10
11.58
12.06
12.54
13.03
13.51
14.00
14.48
14.97
15.46
15.95
16.44
16.94
17.43
13.03
13.51
14.00
14.48
14.97
15.46
15.95
16.44
16.94
17.43
17.93
18.43
18.93
19.43
19.93
20.43
20.94
21.44
21.95
22.46
22.97
23.48
23.99
24.50
25.02
25.53
26.05
26.57
27.09
27.61
28.13
28.66
29.18
29.71
11.00% 11.25% 11.50%
11.75% 12.00% 12.25% 12.50% 12.75%
(FINANCE CHARGE PER $100 OF AMOUNT FINANCED)
0.94
0.96
0.98
1.41
1.44
1.47
1.88
1.92
1.96
2.35
2.41
2.46
2.83
2.89
2.96
3.31
3.39
3.45
3.78
3.87
3.95
4.26
4.36
4.46
4.75
4.85
4.96
5.23
5.35
5.46
5.71
5.84
5.97
6.20
6.34
6.48
6.68
6.84
6.99
7.17
7.34
7.50
7.66
7.84
8.01
8.15
8.34
8.53
8.65
8.84
9.04
9.14
9.35
9.56
9.64
9.86
10.08
10.13
10.37
10.60
10.63
10.88
11.12
11.13
11.39
11.64
11.63
11.90
12.17
12.14
12.42
12.70
12.64
12.93
13.22
13.15
13.45
13.75
13.66
13.97
14.29
14.16
14.49
14.87
14.67
15.01
15.35
15.19
15.54
15.89
15.10
16.06
16.43
16.21
16.59
16.97
16.73
17.12
17.51
17.25
17.65
18.05
17.77
18.18
18.60
18.29
18.71
19.14
0.92
1.38
1.84
2.30
2.77
3.23
3.70
4.17
4.64
5.11
5.58
6.06
6.53
7.01
7.49
7.97
8.45
8.93
9.42
9.90
10.39
10.88
11.37
11.86
12.35
12.85
13.34
13.84
14.33
14.83
15.33
15.84
16.34
16.85
17.35
17.86
13.34
13.84
14.33
14.83
15.33
15.84
16.34
16.85
17.35
17.86
18.37
18.88
19.39
19.90
20.42
20.93
21.45
21.97
22.49
23.01
23.53
24.06
24.58
25.11
25.64
26.11
26.70
27.23
27.17
28.30
28.84
29.31
29.91
30.45
ANNUAL PERCENTAGE RATE
13.66
14.16
14.67
15.19
15.10
16.21
16.73
17.25
17.77
18.29
18.81
19.33
19.86
20.38
20.91
21.44
21.97
22.50
23.03
23.57
24.10
24.64
25.18
25.72
26.26
26.81
27.35
27.90
28.44
28.99
29.54
30.10
30.65
31.20
13.97
14.49
15.01
15.54
16.06
16.59
17.12
17.65
18.18
18.71
19.25
19.78
20.32
20.86
21.40
21.94
22.49
23.03
23.58
24.13
24.68
25.23
25.78
26.33
26.89
27.45
28.00
28.56
29.13
29.69
30.25
30.82
31.39
31.96
14.29
14.87
15.35
15.89
16.43
16.97
17.51
18.05
18.60
19.14
19.69
20.24
20.79
21.34
21.89
22.45
23.01
23.57
24.12
24.69
25.25
25.81
26.38
26.95
27.52
28.09
28.66
29.23
29.81
30.39
30.97
31.55
32.13
32.71
1.00
1.50
2.01
2.51
3.02
3.53
4.04
4.55
5.07
5.58
6.10
6.62
7.14
7.66
8.19
8.71
9.24
9.77
10.30
10.83
11.36
11.90
12.44
12.98
13.52
14.06
14.60
15.15
15.70
16.24
16.79
17.35
17.90
18.46
19.01
19.57
14.60
15.15
15.70
16.24
16.79
17.35
17.90
18.46
19.01
19.57
20.13
20.69
21.26
21.82
22.39
22.96
23.53
24.10
24.61
25.25
25.82
26.40
26.98
27.56
28.15
28.73
29.32
29.91
30.50
31.09
31.68
32.27
32.87
33.47
1.02
1.53
2.05
2.57
3.08
3.60
4.12
4.65
5.17
5.70
6.23
6.76
7.29
7.82
8.36
8.90
9.44
9.98
10.52
11.06
11.61
12.16
12.71
13.26
13.81
14.36
14.92
15.48
16.04
16.60
17.16
17.73
18.29
18.86
19.43
20.00
14.92
15.48
16.04
16.60
17.16
17.73
18.29
18.86
19.43
20.00
20.58
21.15
21.73
22.30
22.88
23.47
24.05
24.64
25.22
25.81
26.40
26.99
27.59
28.18
28.78
29.38
29.98
30.58
31.18
31.79
32.39
33.00
33.61
34.23
1.04
1.57
2.09
2.62
3.15
3.68
4.21
4.74
5.28
5.82
6.36
6.90
7.44
7.99
8.53
9.08
9.63
10.19
10.74
11.30
11.85
12.41
12.97
13.54
14.10
14.67
15.24
15.81
16.38
16.95
17.53
18.11
18.65
19.27
19.85
20.43
15.24
15.81
16.38
16.95
17.53
18.11
18.65
19.27
19.85
20.43
21.02
21.61
22.20
22.79
23.38
23.98
24.51
25.17
25.77
26.37
26.98
27.58
28.19
28.80
29.41
30.02
30.64
31.25
31.87
37.49
33.11
33.74
34.36
34.99
1.06
1.60
2.13
2.67
3.21
3.75
4.29
4.84
5.39
5.94
6.49
7.04
7.59
8.15
8.11
9.27
9.83
10.40
10.96
11.53
12.10
12.67
13.24
13.82
14.40
14.97
15.56
16.14
16.72
17.31
17.90
18.49
19.08
19.67
20.27
20.87
15.56
16.14
16.72
17.31
17.90
18.49
19.08
19.67
20.27
20.87
21.46
22.07
22.67
23.27
23.88
24.49
25.10
25.71
26.32
26.94
27.56
28.18
28.80
29.42
30.05
30.67
31.30
31.93
32.56
33.20
33.83
34.47
35.11
35.75
13.00%
1.08
1.63
2.17
2.72
3.27
3.83
4.38
4.94
5.49
6.05
6.62
7.18
7.75
8.31
8.88
9.46
10.03
10.61
11.18
11.76
12.34
12.93
13.51
14.10
14.69
15.28
15.87
16.47
17.07
17.66
18.27
18.87
19.47
20.08
20.69
21.30
15.87
16.47
17.07
17.66
18.27
18.87
19.47
20.08
20.69
21.30
21.91
22.52
23.14
23.76
24.38
25.00
25.62
26.25
26.88
27.51
28.14
28.77
29.41
30.04
30.68
31.32
31.97
32.61
33.26
33.91
34.56
35.21
35.86
36.52
13.25%
1.10
1.66
2.22
2.78
3.34
3.90
4.47
5.03
5.60
6.17
6.15
7.32
1.90
8.48
9.06
9.64
10.23
10.82
11.41
12.00
12.59
13.19
13.78
14.38
14.98
15.59
16.19
16.80
17.41
18.02
18.63
19.25
19.87
20.49
21.11
21.73
16.19
16.80
17.41
18.02
18.63
19.25
19.87
20.49
21.11
21.73
22.36
22.99
23.61
24.25
24.88
25.51
26.15
26.79
27.43
28.08
28.72
29.37
30.02
30.67
31.32
31.98
12.63
33.29
33.95
34.62
35.28
35.95
36.62
37.29
13.50
1.12
1.69
2.26
2.83
3.40
3.97
4.55
5.13
5.71
6.29
6.88
7.46
8.05
8.64
9.23
9.83
10.43
11.03
11.63
12.23
12.84
13.44
14.05
14.66
15.28
15.89
16.51
17.13
17.75
18.38
19.00
19.63
20.26
20.90
21.53
72.17
16.51
17.13
17.75
18.38
19.00
19.63
20.26
20.90
21.53
72.17
22.81
23.45
24.09
74.73
25.38
26.03
26.68
27.33
27.99
28.65
29.31
29.97
30.63
31.29
31.96
32.61
33.30
33.98
34.65
35.33
36.01
36.69
37.37
38.06
13.75%
1.15
1.72
2.30
2.88
3.46
4.05
4.64
5.22
5.82
6.41
7.01
7.60
8.20
8.81
9.41
10.02
10.63
11.24
11.85
12.46
13.08
13.10
14.32
14.95
15.57
16.20
16.83
17.46
18.10
18.74
19.38
20.02
20.66
21.31
21.95
22.60
16.83
17.46
18.10
18.74
19.38
20.02
20.66
21.31
21.95
22.60
23.25
23.91
24.56
25.22
25.88
26.55
27.21
27.88
28.55
29.22
29.89
30.51
31.24
31.92
32.60
33.29
33.97
34.66
35.35
36.04
36.74
37.43
38.13
38.83
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