Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
103)
$120,000, 10% compounded quarterly,
35 quarterly payments
103)
A)
$2110.64
B)
$5185.20
C)
$5280.81
D)
$5094.19
Find the annual percentage rate using the annual percentage rate table.
56
104)
Amount Financed: $620
Finance Charge: $42.72
Number of monthly payments: 12
104)
A)
11.50%
B)
10.25%
C)
11.00%
D)
12.50%
Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a
percent.
105)
To help plow driveways, Joe Burk purchased a small tractor with a snowplow for $1800. He agreed
to pay $90.44 per month for 22 months when he charged it. What is the approximate annual
percentage rate?
105)
A)
12.0%
B)
11.0%
C)
11.5%
D)
10.5%
Use the real estate amortization table to find the monthly payment for the loan.
106)
What is the monthly payment on a 20–year loan of $55,500 if the annual interest rate is 41
2%?
106)
A)
$424.58
B)
$336.33
C)
$351.32
D)
$308.58
Solve the problem using the loan payoff table or an amortization table.
107)
A real estate company borrowed $391,000 to develop some condos. It amortized the loan to pay
monthly for 4 years at 8% interest. Find the amount of each monthly payment.
107)
A)
$9731.99
B)
$8645.01
C)
$9544.31
D)
$10,705.58
Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
59
108)
$6,500, 6% compounded monthly,
36 monthly payments
108)
A)
$192.86
B)
$197.73
C)
$17.70
D)
$202.90
Find the finance charge and total installment cost of the loan. Round to the nearest cent.
109)
Amount financed: $1184.99
Down payment: $95
Cash price: $1279.99
Number of payments: 36
Amount of payment: $41.66
109)
A)
$1499.76; $1689.76
B)
$219.77; $1594.76
C)
$311.17; $1689.76
D)
$314.77; $1594.76
Solve the problem.
110)
The balance due on a charge card that charges 1.8% on the average unpaid balance is $3666.76.
How much could be saved if the cardholder changed to a credit card that charges 1.0% on the
average unpaid balance?
110)
A)
$29.33
B)
$66.00
C)
$25.67
D)
$36.67
Solve the problem.
111)
Sarah Fields wants to borrow $127,000 at 4% to buy a house. How much would she save in total
costs by going with a 15–year loan over a 25–year loan?
111)
A)
$26,924
B)
$35,687
C)
$34,544
D)
$32,004
Solve the problem.
112)
The Best Company ordered $8327 worth of jewelry on credit on September 8, the note due in 90
days at 11% interest. On November 10 they made a partial payment of $2000. Find the amount due
on the maturity date, and the total interest charged on the note.
112)
A)
$6718.51, $391.51
B)
$6767.23, $430.23
C)
$6540.81, $213.81
D)
$660.14, $293.14
Solve the problem using the loan payoff table or an amortization table.
113)
A movie star purchased a home costing $938,264. He put 20% down and signed a note for monthly
payments at 9% interest for 4 years. Find the amount of each monthly payment and the total
amount of interest paid on the loan.
113)
A)
$18,682.71, $146,158.88
B)
$19,035.50, $163,092.80
C)
$18,322.42, $128,864.96
D)
$23,353.39, $182,698.72
114)
Marge and Tom Martin bought a new car for $26,000. They agreed to pay 25% down and make
monthly payments for 4 years at 10% (compounded monthly) to pay off the rest. Find the amount
of each monthly payment.
114)
A)
$629.21
B)
$659.43
C)
$1970.31
D)
$494.52
Use the real estate amortization table to find the monthly payment for the loan.
115)
What is the monthly payment on a 15–year loan of $63,900 if the annual interest rate is 7%?
115)
A)
$495.23
B)
$510.56
C)
$592.35
D)
$574.46
Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest
tenth of a percent.
116)
Amount financed: $1200
Finance charge: $210
Number of monthly payments: 36
116)
A)
8.6%
B)
25.2%
C)
17.5%
D)
11.4%
Find the finance charge for the following revolving charge account. Assume that interest is calculated on the average
daily balance of the account.
117)
Average Daily Balance Monthly Interest Rate
$323.55 11
2%
117)
A)
$4.04
B)
$5.66
C)
$48.53
D)
$4.85
Solve the problem.
118)
John Atkins can afford a mortgage payment of $750 per month (not including insurance and taxes).
Given a 15–year loan at 8%, find the maximum mortgage to the nearest thousand that he can
afford.
118)
A)
$78,000
B)
$77,000
C)
$90,000
D)
$102,000
119)
The monthly payments on a $79,000 loan at 71
2% interest for 15 years is $733.12. How much of the
first monthly payment will go toward the principal?
119)
A)
$678.14
B)
$493.75
C)
$54.98
D)
$239.37
Find the total monthly payment including taxes and insurance for the loan. Round to the nearest cent.
120)
Amount of loan: $168,250
Interest rate: 4%
Term of loan: 25 years
Annual taxes: $2207
Annual insurance: $647
120)
A)
$1173.30
B)
$1040.39
C)
$1126.19
D)
$888.36
Solve the problem.
121)
Use the average daily balance for the following credit card account to find the finance charge if
interest is 1.59% per month on the average daily balance. Assume one month between billing dates.
Previous balance $261.53.
October 12 Billing date
October 20 Payment $74.00
October 21 Purchase $55.67
October 27 Return $39.84
November 5 Purchase $20.08
121)
A)
$3.66
B)
$3.33
C)
$3.78
D)
$4.31
Answer Key
Testname: C12
Answer Key
Testname: C12
Answer Key
Testname: C12