within Conditional Sales Contract is bona fide, given to secure an unpaid just debt of $1150.00 due from Purchaser to Seller . . ."
From the foregoing, and from other evidence in the record, it is clearly established that the truck was priced at $1,750, and that there was no "credit price", as distinguished from the $1,750. There is no fact in this record which makes applicable the rule of a bona fide credit price. Therefore, we need not discuss credit price as a cloak for usury any further than is discussed in the subsequent topics of this opinion.
III. Interest and Service Charge. Thus, we come to appellee's final defense, which, as previously stated, is that the $140.89 was not only for interest, but for a service charge in connection with the sale of the truck. The balance on the truck was $1,150, and the insurance premium was $148.24, so the debt was $1,298.24. But the note was for $1,439.13. The question is whether such interest and service charge, which when added together exceed 10%,[1] make the transaction usurious. It is clear:
- ↑ Here is the calculation which shows the interest rate to be 11.5%, if monthly payments of $68.53 had been made as contracted:
21 Monthly Payments at $68.53
$1439.18 Principal1298.24
Interest$ 140.89 Effective Interest Rate 11.5%
Contracted Payments of $68.53 each Interest Payments Principal Payments Balance Principal 1st month $12.44 $56.09 $1,242.15 2nd month„ 11.90 $56.63 1,185.52 3rd month„ 11.36 57.17 1,128.35 4th month„ 10.81 57.72 1,070.64 5th month„ 10.26 58.27 1,012.36 6th month„ 9.70 58.83 953.53 7th month„ 9.14 59.39 894.14 8th month„ 8.57 59.89 834.18 9th month„ 7.99 60.54 773.64 10th month„ 7.41 61.12 712.52 11th month„ 6.83 61.70 650.82 12th month„ 6.24 62.29 588.53 13th month„ 5.64 62.89 525.64 14th month„ 6.04 62.89 462.15 15th month„ 4.42 64.11 398.04 16th month„ 3.81 64.72 333.32 17th month„ 3.19 65.34 267.98
