Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash price $7,850 Down payment $0 Annual percentage rate 12.78% Deferred price $10,715.40 or 60 payments at $178.59 per month
1. Calculate the amount financed.
2. Calculate the finance charge. (Do not round intermediate calculations)
3. Calculate the APR by formula. (Do not round intermediate calculations )