The advertisement for the 3-D TV at the Electronic Boutique appeared in your local newspaper this morning. Answer the questions based on the information in the ad.
$3,399APR = 21.83%.APR of 23.75%
An advertisement for a 3-D TV at Electronic Boutique.
At the top of the ad, in bold letters, is the following: "No interest & no payments* for 12 months on all 3-D TVs."
On right side of the ad is an image of a 3-D TV with the price "$3,399," and the caption "Optimax Plus 1080p true HD resolution for better picture quality. 120Hz refresh rate, dual core processor, content sharing and screen mirroring. Smart TV features let you interact and stream content from the web. Supports apps."
At the bottom of the ad, in a small font, is the following: "* Offer is subject to credit approval. No finance charges assessed and no monthly payment required on the promotional purchase if you pay this amount in full by the payment due date as shown on the twelfth (12th) billing statement after purchase date. If you do not, finance charges will be assess on the promotional purchase amount from the purchase date and minimum monthly payment will be required on balance of amount. Standard account terms apply to non-promotional balance and, after the promotion ends, to promotional purchases. APR = 21.83%. APR of 23.75% applies if payment is more than 30 days late. Sales tax will be paid at time of purchase."
(a)
If you purchased the TV on April 23 of this year and the billing date of the installment loan is the 15th of each month, when would your first payment be due?
April of next year
March of this year
March of next year
May of this year
May of next year
Correct: Your answer is correct.
(b)
What is the required amount of that payment (in $)?
$
(c)
What happens if the payment from part (b) is late, by less than 30 days, or less than required?
You will have to repay the sales tax on the TV.
You will be charged an interest of 23.75%.
You will be charged an interest of 21.83%.
You will have to purchase the TV in full.
You will have to return the TV, with no refund.
Correct: Your answer is correct.
How much additional money (in $) does this amount to? (Round your answer to the nearest cent.)
$
(d)
What happens if the payment from part (b) is more than 30 days late?
You will have to repay the sales tax on the TV.
You will be charged an interest of 23.75%.
You will be charged an interest of 21.83%.
You will have to purchase the TV in full.
You will have to return the TV, with no refund.
Correct: Your answer is correct.
How much additional money (in $) does this amount to? (Round your answer to the nearest cent.)
$
(e)
What are some of the advantages of this offer? (Select all that apply.)
There are no monthly payments on the TV, if paid in full by the payment due date.
The finance charges for late or incomplete payments are high.
There are no finance charges, if paid in full by the payment due date.
There is a discout on the TV price.
There is nothing to pay at the time of purchase.
If payments are late by more than 30 days, the APR on the balances increases.
Incorrect: Your answer is incorrect.

What are some of the disadvantages of this offer? (Select all that apply.)
There are no monthly payments on the TV, if paid in full by the payment due date.
The finance charges for late or incomplete payments are high.
There are no finance charges, if paid in full by the payment due date.
There is a discout on the TV price.
There is nothing to pay at the time of purchase.
If payments are late by more than 30 days, the APR on the balances increases.
Changed: Your submitted answer was correct. Your current answer has not been submitted.