AQR B Unit 2 Lesson 3 Making Monthly Payments Quick Check

Calculate the monthly payment for a $2,500 loan at 10% annual interest for two years.

$115.40

Calculate the total payback for a $2,500 loan at 10% annual interest for two years.

$2,769.60

Oliva buys a 5-piece living room set from a furniture store offering 0% interest for 9 months. Calculate the average monthly payment she should make to avoid paying deferred interest charges for the $4,999 set.

$555.44

If the annual interest rate is 12%, what is the monthly interest rate?

1%

Alice wants to use the stack method to pay down her debts listed in the table below. If she applies an extra $150 a month to her debts, what will be the first debt she targets to pay off and what will be the monthly amount she applies to it?

Debt 3, $300