Solve the problem and use the table to find the annual percentage rate.
41
80)
An appliance store offers a refrigerator for $1700 with no down payment, $211.14 in finance
charges and 24 equal payments. Find the annual percentage rate.
80)
A)
11.50%
B)
11.00%
C)
D)
11.75%
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.
81)
Unpaid Balance Monthly Interest Rate
$286.00 1.7%
81)
A)
$4.12
B)
$4.86
C)
D)
$3.43
Solve the problem using the loan payoff table or an amortization table.
82)
John Thomas bought a new car for $16,967. He paid 10% down and monthly payments for 3 years
at 10%. Find the amount of each monthly payment necessary to amortize the loan and the total
amount of interest paid over the 3 years.
82)
A)
$499.95, $2727.90
B)
$492.77, $2469.42
C)
$577.37, $5515.02
D)
$547.53, $2744.08
Solve the problem.
83)
The monthly payments on a $55,000 loan at 71
2% interest for 30 years is $385.00. How much of the
first monthly payment will go toward the principal?
83)
A)
$356.13
B)
$41.25
C)
D)
$28.88
Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a
percent.
84)
Eddie Hodges buys a complete stereo with CD for $980, paying it off at $46.19 per month for 2
years. What is the approximate APR of the loan?
84)
A)
12.1%
B)
11.4%
C)
D)
12.6%
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.
85)
Finance charge: $80,368
Total number of payments: 352
Remaining number of payments, when paid in full: 15
85)
A)
$136.60
B)
$156.11
C)
D)
$135.83
Solve the problem using the loan payoff table or an amortization table.
86)
If you borrowed $5,785,829.56 at 9% interest paid monthly for 3 years, what is the amount of each
payment?
86)
A)
$181,327.90
B)
$161,135.35
C)
D)
$186,708.72
Solve the problem.
87)
The monthly payments on a $72,000 loan at 7% interest for 25 years is $509.04. How much of the
first monthly payment will go toward the principal?
87)
A)
$35.63
B)
$473.41
C)
D)
$89.04
Use the real estate amortization table to find the monthly payment for the loan.
88)
What is the monthly payment on a 30–year loan of $56,400 if the annual interest rate is 7%?
88)
A)
$398.75
B)
$375.06
C)
D)
$394.24
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
47
89)
$50,000, 6% compounded annually,
33 annual payments
89)
A)
$3513.50
B)
$2617.38
C)
D)
$3550.12
Find the finance charge for the following revolving charge account. Assume that interest is calculated on the average
daily balance of the account.
90)
Average Daily Balance Monthly Interest Rate
$1409.61 1.2%
90)
A)
$18.32
B)
$169.15
C)
D)
$15.51
Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest
tenth of a percent.
91)
Amount financed: $400
Finance charge: $39
Number of monthly payments: 24
91)
A)
8.7%
B)
10.2%
C)
D)
9.4%
Solve the problem.
92)
The monthly payments on a $62,000 loan at 41
2% interest for 20 years is $392.46. How much of the
first monthly payment will go toward interest?
92)
A)
$279.00
B)
$17.66
C)
D)
$374.80
93)
Global Transport built a new building and amortized $6,600,000 for 20 years at 51
2%. Find the
monthly payment.
93)
A)
$53,922
B)
$40,524
C)
D)
$45,408
Find the finance charge and total installment cost of the loan. Round to the nearest cent.
94)
Amount financed: $340
Down payment: $70
Cash price: $410
Number of payments: 18
Amount of payment: $21.37
94)
A)
$384.66; $524.66
B)
$26.66; $524.66
C)
$25.34; $454.66
D)
$44.66; $454.66
Use the real estate amortization table to find the monthly payment for the loan.
95)
What is the monthly payment on a 20–year loan of $69,100 if the annual interest rate is 8%?
95)
A)
$578.37
B)
$556.95
C)
D)
$599.79
96)
What is the monthly payment on a 25–year loan of $68,900 if the annual interest rate is 71
2%?
96)
A)
$481.61
B)
$509.17
C)
D)
$555.33
Use the loan payoff table to find the monthly payment and finance charge for the loan.
97)
Amount financed: $27,049
Number of months: 18
APR: 12%
97)
A)
$1649.45, $2641.10
B)
$1624.45, $2191.10
C)
$1674.79, $3097.22
D)
$127.33, $24,757.06
Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent.
98)
Amount of loan: $83,275
Interest rate: 5%
Term of loan: 20 years
Annual taxes: $1557
Annual insurance: $530
98)
A)
$746.85
B)
$549.62
C)
D)
$661.08
Solve the problem.
99)
The James family wants to save some money in interest by paying off their auto loan 15 months
early. The 36–month loan required payments of $455 per month. The car cost $18,600 with a down
payment of $6000. How much unearned interest did they save?
99)
A)
$681.08
B)
$720.00
C)
D)
$2287.44
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
53
100)
$32,000, 5% compounded semiannually,
30 semiannual payments
100)
A)
$541.73
B)
$1528.96
C)
D)
$1495.65
Solve the problem.
101)
The Habers purchase a $7000 living room set, putting $500 down and agreeing to pay $350.50 each
month for 2 years. After 14 payments, they decide to pay off the note. How much is saved in
interest? How much is needed to pay the balance of the loan?
101)
A)
$350.53, $3154.47
B)
$353.37, $3152.13
C)
$357.65, $3147.85
D)
$351.71, $3153.79
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.
102)
Principal: $32,148
Interest: 11%
Time (days): 220
Partial payment: $10,000 on day 100
$5000 on day 140
$5000 on day 200
102)
A)
$13,214.40; $1066.40
B)
$12,943.60; $795.60
C)
$13,834.60; $1686.60
D)
$14,164.50; $2016.50