Use the real estate amortization table to find the monthly payment for the loan.
45)
What is the monthly payment on a 15–year loan of $96,000 if the annual interest rate is 5%?
45)
A)
$759.36
B)
$633.60
C)
$1018.56
D)
$734.40
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
21
46)
$1000, 8% compounded annually,
13 annual payments
46)
A)
$132.70
B)
$126.52
C)
$58.49
D)
$121.30
Find the finance charge for the following revolving charge account. Assume that interest is calculated on the average
daily balance of the account.
47)
Average Daily Balance Monthly Interest Rate
$1649.25 1.2%
47)
A)
$19.79
B)
$18.14
C)
$21.44
D)
$197.91
Solve the problem.
48)
The monthly payments on a $91,000 loan at 7% interest for 30 years is $605.15. How much of the
first monthly payment will go toward interest?
48)
A)
$637.00
B)
$562.79
C)
$530.83
D)
$42.36
Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to
the nearest cent.
49)
Finance charge: $23,445
Total number of payments: 38
Remaining number of payments, when paid in full: 6
49)
A)
$700.35
B)
$664.43
C)
$500.25
D)
$474.60
Solve the problem.
50)
To produce a calculator, Cal Industries signed a note on April 2 for $86,400, due in 120 days at 14%
interest. On May 5 they made a payment of $20,000, and on June 1 another of $25,000. Find the
amount due on the maturity date and the interest charged.
50)
A)
$45,112.15, $3652.15
B)
$44,624.45, $3164.45
C)
$44,226.05, $2826.05
D)
$43,914.25, $2514.25
Find the annual percentage rate using the annual percentage rate table.
24
51)
Amount Financed: $990
Finance Charge: $80.29
Number of monthly payments: 18
51)
A)
10.00%
B)
12.50%
C)
11.25%
D)
11.50%
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
26
52)
Marge and Tom Martin bought a new car for $30,000. They agreed to pay 20% down and make
monthly payments for 4 years at 10% (compounded monthly) to pay off the rest.
52)
A)
$608.64
B)
$2425.00
C)
$774.41
D)
$760.80
Find the finance charge and total installment cost of the loan. Round to the nearest cent.
53)
Amount financed: $846.00
Down payment: $94.00
Cash price: $940.00
Number of payments: 24
Amount of payment: $52.78
53)
A)
$423.00; $846.00
B)
$420.72; $1360.72
C)
$846.00; $1360.72
D)
$94.00; $939.90
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
27
54)
The Meyers bought a Sandwich City franchise for $400,000. They paid $80,000 of their own money
and borrowed the rest, agreeing to make semiannual payments over 8 years at 8% (compounded
semiannually).
54)
A)
$34,328.00
B)
$52,555.94
C)
$48,456.40
D)
$27,462.40
Use the loan payoff table to find the monthly payment and finance charge for the loan.
55)
Amount financed: $63,502
Number of months: 48
APR: 8%
55)
A)
$1580.56, $12,364.88
B)
$1738.68, $19,954.64
C)
$1404.03, $3891.44
D)
$1550.08, $10,901.84
Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest
tenth of a percent.
56)
Amount financed: $317
Finance charge: $16
Number of monthly payments: 12
56)
A)
9.3%
B)
4.8%
C)
11.0%
D)
5.5%
57)
Amount financed: $430
Finance charge: $50
Number of monthly payments: 18
57)
A)
16.4%
B)
14.7%
C)
9.2%
D)
11.6%
Find the annual percentage rate using the annual percentage rate table.
30
58)
Amount Financed: $610
Finance Charge: $69.42
Number of monthly payments: 24
58)
A)
11.25%
B)
12.50%
C)
11.50%
D)
10.50%
Find the finance charge on the revolving charge account. Assume interest is calculated on the unpaid balance of the
account. Round to the nearest cent.
59)
Unpaid Balance Monthly Interest Rate
$493.80 17
8%
59)
A)
$11.11
B)
$9.26
C)
$8.64
D)
$10.37
Solve the problem.
60)
On June 1, the unpaid balance in an account was $177. On June 13, a payment of $75 was made.
The finance charge rate was 1.5% per month of the average daily balance. Find the new balance at
the end of June.
60)
A)
$121.80
B)
$103.50
C)
$103.93
D)
$103.98
Find the finance charge and total installment cost of the loan. Round to the nearest cent.
61)
Amount financed: $165
Down payment: $20
Cash price: $185
Number of payments: 6
Amount of payment: $28.59
61)
A)
$12.54; $211.54
B)
$171.54; $211.54
C)
$13.46; $191.54
D)
$6.54; $191.54
Solve the problem and use the table to find the annual percentage rate.
32
62)
Eric Yu purchased a boat costing $12,100 with $800 down and loan payments of $291 per month for
48 months. Find the total installment cost and the annual percentage rate.
62)
A)
$13,968; 10.75%
B)
$13,968; 10.25%
C)
$13,168; 10.25%
D)
$14,768; 10.75%
Use the real estate amortization table to find the monthly payment for the loan.
63)
What is the monthly payment on a 30–year loan of $104,400 if the annual interest rate is 71
2%?
63)
A)
$766.30
B)
$771.52
C)
$730.80
D)
$704.70
Find the balance due on the maturity date of the note. Find the total amount of interest paid on the note. Use the United
States Rule.
64)
Principal: $3000
Interest: 8 1
2%
Time (days): 60
Partial payment: $1200 on day 30
64)
A)
$1644.24; $44.24
B)
$1812.75; $34.00
C)
$1924.87; $124.87
D)
$1834.15; $34.15
Solve the problem.
65)
On June 18 Delane Adams bought a microwave oven for $350 on credit, the note due in 30 days at
11.25% interest. On July 1 she made a partial payment of $100. Find the amount due on the
maturity date of the note and the interest paid on the note.
65)
A)
$247.19, $5.19
B)
$250.12, $2.12
C)
$258.63, $8.63
D)
$252.76, $2.76
Find the finance charge for the following revolving charge account. Assume that interest is calculated on the average
daily balance of the account.
66)
Average Daily Balance Monthly Interest Rate
$804.90 11
2%
66)
A)
$14.09
B)
$10.06
C)
$12.07
D)
$120.74
Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to
the nearest cent.
67)
Finance charge: $777
Total number of payments: 21
Remaining number of payments, when paid in full: 11
67)
A)
$203.50
B)
$244.20
C)
$185.00
D)
$222.00
Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent.
68)
Amount of loan: $130,000
Interest rate: 6%
Term of loan: 25 years
Annual taxes: $2237
Annual insurance: $588
68)
A)
$877.50
B)
$1205.22
C)
$1057.02
D)
$1112.92
Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest
tenth of a percent.
69)
Amount financed: $122,899
Finance charge: $212,419
Number of monthly payments: 360
69)
A)
11.6%
B)
3.8%
C)
11.5%
D)
8.7%
Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a
percent.
70)
Doris White decided to get new appliances for her kitchen at a cost of $5900. She puts $700 down
and will pay $137.75 per month for 48 months. Find the total installment cost, the finance charge,
and the approximate annual percentage rate.
70)
A)
Total: $7312.00
Finance Charge: $1412.00
APR: 13.3%
B)
Total: $7312.00
Finance Charge: $2112.00
APR: 19.9%
C)
Total: $6612.00
Finance Charge: $712.00
APR: 5.9%
D)
Total: $6912.00
Finance Charge: $1012.00
APR: 9.7%
71)
Jordan wants to buy an electric guitar for $320. The music store offers to let him buy it on credit,
paying only $11.14 per month for 33 months. What is the finance charge? What is the approximate
annual percentage rate?
71)
A)
$47.62, 10.5%
B)
$58.76, 12.9%
C)
$42.76, 10.8%
D)
$36.48, 8.3%
Find the finance charge on the revolving charge account. Assume interest is calculated on the unpaid balance of the
account. Round to the nearest cent.
72)
Unpaid Balance Monthly Interest Rate
$376.50 1.413%
72)
A)
$6.38
B)
$5.32
C)
$3.44
D)
$4.13
Use the loan payoff table to find the monthly payment and finance charge for the loan.
73)
Amount financed: $273,438
Number of months: 36
APR: 11%
73)
A)
$9080.88, $53,473.68
B)
$10,467.21, $103,381.56
C)
$8823.84, $44,220.24
D)
$8952.36, $48,846.96
Find the unpaid balance at the end of the month for the account.
74)
Unpaid
Balance at Finance
Month Beginning Charge Purchases Returns Payment
May $1098.30 $363.91 $47.97 $250.00
Finance rate is 1.7% on the unpaid balance.
74)
A)
$84.61
B)
$1182.91
C)
$1278.85
D)
$1230.88
Find the balance due on the maturity date of the note. Find the total amount of interest paid on the note. Use the United
States Rule.
75)
Principal: $38,400
Interest: 9.2%
Time (days): 180
Partial payment: $20,000 on day 100
75)
A)
$22,101.51; $3701.51
B)
$19,777.57; $1377.57
C)
$20,421.19; $2421.19
D)
$18,642.69; $242.69
Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest
tenth of a percent.
76)
Amount financed: $17,600
Finance charge: $3915
Number of monthly payments: 48
76)
A)
5.4%
B)
10.9%
C)
22.2%
D)
42.7%
Use the real estate amortization table to find the monthly payment for the loan.
77)
What is the monthly payment on a 30–year loan of $79,400 if the annual interest rate is 8%?
77)
A)
$610.59
B)
$612.97
C)
$582.80
D)
$555.01
Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to
the nearest cent.
78)
Finance charge: $9391
Total number of payments: 64
Remaining number of payments, when paid in full: 42
78)
A)
$4010.74
B)
$4076.96
C)
$4206.39
D)
$3887.33
Solve the problem.
79)
On April 1, the unpaid balance in an account was $166. A payment of $45 was made on April 14.
On April 26 a $13 purchase was made. The finance charge rate was 1.75% per month of the average
daily balance. Find the new balance at the end of April.
79)
A)
$168.46
B)
$123.46
C)
$136.50
D)
$135.75