"PARTIAL PAYMENTS, INSTALLMENT BUYING, MERCHANT'S (MF), CONSTANT RATIO (CRF), SERIES OF PAYMENT'S (SPF), DIRECT RATIO (DRF). Customer makes DOWNPAYMent for purchased goods (CASHPRC) and agrees to make a required number (NUMPAYMT) of weekly (NPAYYEAR=52) or monthly (NPAYYEAR=12) payments (PAY4IT$). For MF method, partial payments are first used to pay off the unpaid balance and then carrying charge. For CRF method, repayment of unpaid balance and carrying charge is in the same ratio as the original unpaid balance to carrying charge. For SPF method, sum of present values on the date of purchase of the sequence of partial payments at a simple discount is the unpaid balance. The DRF method is consisted a more accurate formula attributed to H. E. Stelson. *** Answers to Problems **** Variables are set equal to proper values at entry. (a) RATE%MF=19.51, (b) RATE%CR=18.18, (c) DISC%SPF=18.18, (d) RATE%DRF=17.78. Type any key to exit. (c) PCSCC, Inc., 1993 ||Mr. Craznik buys a personal computer listed at $1,349.95 cash. He can buy it for $149.95 down and 10 monthly installments of $130.00 each. Find rates of interest charged using (a) Merchant's Formula, (b) Constant Ratio Formula, (c) Series-of-down-payments Formula, and (d) Direct Ratio formula?. Type comma key to see answers. Type (F2) to return to application file."
