Math Part 6

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price. A bunk bed with a cash price of $1,998, at $143 per month for 15 months.

Given: Cash price = 1,998 143 per month for 15 months a) total installment price: 143 x 15 = 2,145 b) the carrying charges 2,145 - 1998 = 147 c) number of months needed to save the money at the monthly rate. 1,998 / 143 = 13.97 or 14 months.

Jim Pine purchased some equipment for $630 with 25% down. He agreed to make 30 payments of $20. What is the total amount paid (will include down payment) and finance charge in dollars?

total paid including down payment: 757.5 finance charge: 127.5

Joshua Bennett purchased a television for $245.95 with 40.25% down. He will make 6 payments of $25.83 each. What is the total amount paid (will include down payment) and finance charge in dollars?

total pain including down payment: 253.97 finance charge: 8.02

A person might accidentally overdraw because they may not reconcile their statement.

true

A person might accidentally overdraw because they may not record an ATM withdrawal.

true

An overdraft is a check which cannot be covered by funds in the account.

true

Intentionally writing a check on an account with insufficient funds is illegal.

true

Overdraft protection means the bank will loan you the money needed to cover the check which can not be covered by funds in the account.

true

The APR can be used to compare different loans.

true

Without careful planning a student can take on too much debt very early in life and fall into financial difficulty.

true

Find the interest due on $6,000 at 12% for 2 years.

$1440

Find the interest due on $700 at 10.5% for 90 days.

$18.38

Find the interest due on $600 at 9.5% for 120 days.

$19.00

Dale Walker purchased a new riding mower for $1,300.00. He agreed to pay $124.58 a month for 12 months. What is the finance charge in dollars? The finance charge is

$194.96

Amount Financed (m) = $275 Number of Payments per year (y) = 12 Number of Payments (n) = 18 APR (I) = 12%

$26.13

Find the interest due on $1,200 at 8% for 240 days.

$64.00

Find the interest due on $1,400 at 9% for 270 days. (Remember that for bank interest purposes, a year is considered to have 360 days.)

$94.50

Amount Financed (m) = $1,100 Number of Payments per year (y) = 12 Number of Payments (n) = 18 Total Interest (c) = $88.18

10.1%

Sonja Koch has a $90,000 loan. She paid $350 for a title background check, $400 for the title insurance, $250 for deeds and attorneys, and $8,690.40 in total interest for the first year. If the APR is the finance charge for one year ÷ amount financed, what was the APR for that year?

10.8%

John Blake takes out a mortgage for $80,000. There is a loan of 30 years at $600 per month. This gives a total interest of $136,000 for 30 years. What is the APR using the formula?

11.3

Tim Tele received a $380 discount loan to purchase a VCR. The loan was offered at 18% for 60 days. Find the interest in dollars and the proceeds for the following problem. The interest is $ The proceeds are

11.40, 368.60

Mike Stewart purchased a new lawn mower for $320.00. He agreed to pay $36 a month for 12 months. What is the finance charge in dollars?

112

Carla Compra borrowed $800 at 14% for one year. She paid a $15 processing fee. The interest paid will be $ . Thus, the total finance charge (the interest plus the processing fee) will be $ Therefore, to the nearest tenth, the APR = total finance charge ÷ amount borrowed =

112.00, 127.00, 15.9

Amount Financed (m) = $600 Number of Payments per year (y) = 12 Number of Payments (n) = 24 APR (I) = 18%

112.50$

Stacy Smith has a $50,000 loan. She paid $250 for a credit report, $300 for attorneys, $250 for appraisal fees, and $5,268 in total interest for the first year. If the APR is the finance charge for one year ÷ amount financed, what was the APR for that year?

12.1%

John Brown has a $50,000 loan. He has a 9% annual interest rate. He paid $2,000 in fees and $4,486.05 in total interest the first year. If the APR is the finance charge for one year ÷ amount financed, what was the APR rounded to the nearest percent for that year?

13.0%

Amount Financed (m) = $1,400 Number of Payments per year (y) = 12 Number of Payments (n) = 24 Total Interest (c) = $200.50

13.7

Barbara Borrower has a short term note at 15% interest per year.

16.1

Sylvia Smith takes out a $85,000 mortgage. She paid 2.2% of the loan amount in closing costs and $7,200.35 in total interest the first year of the loan. What are Sylvia's closing costs? $ If the APR is (interest for one year plus closing costs) ÷ (amount financed), what was the APR for that year? % If the APR is (interest only for one year) ÷ (amount financed), what was the APR for that year? %

1870.00, 10.7, 8.5

Amount: $90,000 Rate: 9 % Payments: 360 @ $724.12 Total Interest: $170,683.20 How much will be repaid for this loan? $ What percentage of this total is total interest? What will be the average amount per payment for interest? $

260683.20, 65.5, 474.12

Sue Shopper received a $749.25 discount loan to purchase a refrigerator. The loan was offered at 12% for 120 days. Find the interest in dollars and the proceeds for the following problem. The interest is $ . The proceeds are $ .

29.97, 719.28

Jen Anderson takes out a mortgage for $120,000. This is a loan of 30 years at $500 per month. This gives a total interest cost of $60,000. What is the APR using the formula?

3.3%

Amount: $125,000 Rate: 8 % Payments: 360 @ $917.19 Total Interest: $205,188.40 How much will be repaid for this loan? $ What percentage of this total is total interest (to the nearest tenth)? What will be the average amount per payment for interest? $

330188.4, 62.1, 569.97

Josh Hayes purchased a bicycle for $350.00 with 30% down. He will make 12 payments of $24.50 each. What is the total amount paid (will include down payment) and finance charge in dollars? The total paid (including down payment) is $ . The finance charge in dollars is $

399.00, 49.00

Amount Financed (m) = $2,500 Number of Payments per year (y) = 12 Number of Payments (n) = 36 Total Interest (c) = $158.15

4.1%

Matt Johnson takes out a mortgage for $240,000. There is a loan of 30 years at $1,200 per month. This gives a total interest of $192,000. What is the APR using the formula?

5.3

Jon Hall purchased a new CD player on an installment loan. The CD player was $250.00. He agreed to pay $25 a month for 12 months. What is the finance charge in dollars?

50

Joe Summers buys a gas grill and accessories. The cost, including tax, amounts to $850.00. Joe finances the grill over 12 months after making a $150 down payment. The true annual interest rate is 14%. What are Joe's monthly payments (principal plus interest)? To the nearest penny, c = $ . Total of payments = amount financed + c = $ . Total of payments ÷ number of payments = monthly payment = $ .

53.08, 753.08, 62.76

A sofa with a cash price of $400 at $50 down and $20.00 per month for 24 months.

530.00, 130.00, 20

Find the interest due on $250 at 11% for 2 years.

55.00

Tom Brown decided to purchase a new bike on an installment loan. The bike was $300.00. He agreed to pay $30 a month for 12 months. What is the finance charge in dollars?

60.00

Paula Purchaser borrowed $500 at 12 percent for one year. She paid a $25 processing fee. The interest paid will be $ Thus, the total finance charge (the interest plus the processing fee) will be $ Therefore, the APR = total finance charge ÷ amount borrowed =

60.00, 85.00, 17%

Mike Morgan has a $83,098.59 loan. He paid $1,000 in fees and $4,900 in total interest the first year. If the APR is the finance charge for one year ÷ amount financed, what was the APR for that year?

7.1%

Jim Tree writes a $40 check which is returned for "insufficient funds." His bank charges a $20 fee for an overdraft, and the company he wrote the check to charges $15. How much must Jim pay total to clear up this situation?

75

Note: The monthly loan payment was calculated at 119 payments of $242.66 plus a final payment of $241.78. Loan Balance: $20,000.00 Loan Interest Rate: 8.00% Monthly Loan Payment: $242.66 Number of Payments: 120 Cumulative Payments: $29,118.32 Total Interest Paid: $9,118.32 On average, what dollar amount of each monthly payment is interest? $ What percent of the total payments is total interest? %

75.99, 31.30

Tim Smith has a $90,000 loan. His monthly payment is given in the table above. He paid $1,500 in fees and $6,271.04 in total interest the first year of the loan. If the APR is finance charge for one year ÷ amount financed, what was the APR for that year?

8.6%

There is a $81,818 loan with annual interest due. There was $900 in closing fees and $6,300 in total interest the first year. If the APR is the finance charge for one year ÷ amount financed, what was the APR for that year?

8.8%

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price. A racing bicycle with a cash price of $900 at $90.00 down and $40.50 per month for 24 months.

90+40.50×24 =1,062 1,062−900 =162 900÷40.50 =23

Tommy Hayden decided to purchase a new moped on an installment loan. The moped was $1,500.00. He agreed to pay $150 a month for 12 months. What is the finance charge in dollars?

Finance charge #300.00

Jim Tree buys his stock on credit at 14%.

APR = 14.9

Betty Buyer has a short term note at 16% interest per year.

APR = 17.2%

Sam Seller offers credit at 19% interest per year.

APR = 20.7%

Rebecca Smith purchased some furniture for $890 with 15% down. She agreed to make 36 payments of $25.22. What is the total amount paid (will include down payment) and finance charge in dollars? The total paid (including down payment) is 1041.42 a0. The finance charge in dollars is

NOT 1041.42, 151.42

Bob Businessman offers credit at 20% interest per year.

NOT 22.9

Amount Financed (m) = $500 Number of Payments per year (y) = 12 Number of Payments (n) = 12 APR (I) = 17%

NOT 46.54

Based on the information below, choose the correct answer. Note: The monthly loan payment was calculated at 119 payments of $367.96 plus a final payment of $367.57. Loan Balance: $30,000.00 Loan Interest Rate: 8.25% Number of Payments: 120 Monthly Loan Payment: $367.96 Cumulative Payments: $44,154.81 Total Interest Paid: $14,154.81

Payment is interest: $117.96 Total payments is interest: 32.1

Sam Lane purchased a swing set for $725 with 15% down. He will make 12 payments of $54.35 each. What is the total amount paid (include down payment) and finance charge in dollars?

Total Paid: 760.95 finance charge: 35.95

A series is:

a summation of quantities whose positions are based upon the natural numbers

A sequence is:

an arrangement of quantities whose positions are based upon the natural numbers

A progression is:

an arrangement of quantities whose positions are based upon the natural numbers a summation of quantities based upon a sequence

Frank Friedman writes a $45 check, but his account has only $20 in it. He must also pay Central City Power and Water charges $25 for returned checks. Which of the following represents the amount Frank must have in his account to balance his debts.

at least $70

On November 25th, Sherri Client's beginning checking balance is $50 and her account is credited for a deposit of $100. That same day, two checks are posted totaling $75.

deposits before checks: no Checks before deposits: yes

On July 5th, Paul Potter's beginning checking balance is $20 and his account is credited for a deposit of $50. That same day, two checks are posted totaling $75.

deposits before checks: yes checks before deposits: yes

On Friday, March 16th, Bob Smith's beginning checking balance is $50 and his account is credited for a deposit of $100. That same day, two checks are posted totaling $75.

deposits before posts checks: no Checks before it credits deposits: yes

A person might accidentally overdraw because they forget to record a deposit.

false

Intentionally writing a check on an account with insufficient funds is not a problem.

false

Overdraft protection means the bank will protect your funds from excessive taxation.

false

The amount of interest you pay does not depend on the method the lender uses to calculate interest.

false

The finance charge you will pay in dollars is the only thing you need to know about a loan.

false

balloon payment large payment due at the end of the loan period closing costs fees associated with taking out a mortgage down payment initial cash payment fixed rate interest rate that does not change LTV Loan To Value mortgage a loan based on the value of the real estate it is used to purchase prepayment penalties fees required if loan is paid off before the end of its original term variable rate interest rate tied to an index that may change

finite has a beginning and an end infinite has no ending natural numbers the positive integers progression a sequence or a series, i.e. an arrangement of quantities, or summation of quantities, whose positions are based upon the natural numbers sequence an arrangement of quantities whose positions are based upon the natural numbers series a summation of quantities based upon a sequence

Tim Fisher received a $1200 discount loan to purchase a computer. The loan was offered at 18% for 180 days. Find the interest in dollars and the proceeds for the following problem.

interest: 108 proceeds: 1092

John Green received a $580 discount loan to purchase a big screen television. The loan was offered at 16% for 60 days. Find the interest in dollars and the proceeds for the following problem.

interest: 15.47 proceeds: 564.53

Martha Jones received a $540 discount loan to purchase a new sewing machine. The loan was offered at 12.5% for 90 days. Find the interest in dollars and the proceeds for the following problem.

interest: 16.88 proceeds: 523.12

Adam Smith received a $875 discount loan to purchase an entertainment center. The loan was offered at 10.5% for 120 days. Find the interest in dollars and the proceeds for the following problem.

interest: 30.63 proceeds: 844.37

Jim Fleming received a $3,000 discount loan for a down payment on a car. The loan was offered at 16% for 360 days. Find the interest in dollars and the proceeds for the following problem.

interest: 480 proceeds: 2520

Note: The monthly loan payment was calculated at 119 payments of $348.33 plus a final payment of $347.54. Loan Balance: $30,000.00 Loan Interest Rate: 7.00% Monthly Loan Payment: $348.33 Number of Payments: 120 Cumulative Payments: $41,798.81 Total Interest Paid: $11,798.81

monthly payment is interest: 98.32 total payment

Sarah Worker writes a $35 check which is returned by her bank with additional charges. ABC Cleaning also charges $25 for returned checks, which of the following represents the amount Sarah must have to balance her debts?

more than $60

Sarah Saver writes a $40 check which is returned by her bank with additional charges. The company she wrote the check to, Johnson Plumbing, also charges $25 for returned checks, which of the following represents the amount Sarah must have to balance her debts?

more than $65