Question

On approved XYZ credit card purchases, based on your credit-worthiness, other terms may apply. $2,399 minimum purchase required for this offer. Other finance offers available with lower minimum payment requirements. The purchase amount is divided into equal monthly payments for the promotional period. An additional $37.50 will be added to the following month's payment if payment is received after the due date. No finance charges for 24 months. 23.9% standard rate, APR. The promotion is canceled for accounts not current, and the default rate of 25.9% and regular minimum monthly payments apply.

Answer 1

Kelsey and Cody want new living room furniture. They see a flyer in Sunday's newspaper for XYZ offering free money for 24 months (or so they think). At the store, they pick out a leather sofa and two ottomans. The sofa is $1,499 and each ottoman is $299. Are they eligible for the promotion with just those items? No, they have to make a minimum purchase of $2,399. So, in addition to the three-piece sofa set, they select a $249 coffee table and a $199 end table.

Kelsey and Cody have been making payments on this furniture for 18 months, but Cody gets laid off from his job and their income drops substantially. They are unable to stay current on their account even though they have paid $2,070 of the bill.

What is the total amount Kelsey and Cody financed, including $153 for tax and $75 for delivery?
According to the conditions stated in the disclosure statement, how much are their monthly payments?
If Kelsey and Cody do not send their payment in on time, what will the following month's payment be?
According to the disclosure terms, what happens to Kelsey and Cody's bill, including finance charges, when they get behind on their payments?
If you assume they are back-charged the increased finance rate from the beginning of the promotional period, how much will they owe in finance charges for the first year?
What is the minimum amount they would have saved if they paid cash? (hint: think about their original intended purchase)

Answer 2

Can someone help me