or duplicated, or posted to a publicly accessible website, in whole or in part.
Name _____________________________________________________________ Date ________________________
or duplicated, or posted to a publicly accessible website, in whole or in part.
7. Jeanne has a $14,800, 3
1
__
2
-year loan with an APR of 8.56%.
e. Do you feel that it is worth paying the higher monthly payment to have the loan nish
six months earlier?
8. Liz found an error in the monthly payment her bank charged her for a four-year, $19,500
loan. She took the loan out at an APR of 9%. Her bank was charging her $495.26 per month.
9. The Bartolotti family took out a loan to have a garage built next to their house. The ten-year,
10.4% loan was for $56,188. The monthly payment was $475, but the promissory note stated
that there was a balloon payment at the end.
a. How many monthly payments do the Bartolotti’s have to make?
b. What is the sum of all but the last monthly payment?
c. If the nance charge is $34,415.60, what must the total of all of the monthly payments be?
d. What is the amount of the balloon payment for the nal month of this loan?
10. Christina is a police o cer, so she can use the Police and Fire Credit Union. The credit union
will lend her $11,000 for three years at 8.05% APR. The same loan at her savings bank has an
APR of 10.1%.
a. How much would Christina save on the monthly payment if she takes the loan from the
credit union?
b. How much would she save in nance charges by taking the loan from the credit union?
2
Answers vary.
120
$56,525
$90,603.60
$34,078.60
$10.51
$378.36
Name _____________________________________________________________ Date ________________________
or duplicated, or posted to a publicly accessible website, in whole or in part.
11. Neville is considering taking out a $9,000 loan. He went to two lending institutions. Sunset
Park Company o ered him a 10-year loan with an interest rate of 5.2%. Carroll Gardens Bank
o ered him an 8-year loan with an interest rate of 6.6%. Which loan will have the lowest
interest over its lifetime?
12. JFK Federal Bank o ers a $50,000 loan at an interest rate of 4.875% that can be paid back
over 3 to 15 years.
a. Write the monthly payment formula for this loan situation. Let t represent the number of
years from 3 to 15 inclusive.
b. Write the total interest formula for this loan situation. Let t represent the number of years
from 3 to 15 inclusive.
Use the table of decreasing loan balances for a $230,000 loan at 5.5% for 20 years.
13. Write a linear regression equation that models the data
with numbers rounded to the nearest tenth.
14. Write a quadratic regression equation that models the
data with numbers rounded to the nearest tenth.
15. Write a cubic regression equation that models the data
with numbers rounded to the nearest tenth.
Loan Balance
1$223.502.14
2$216,637.75
4$201,725.52
5$193,632.76
8$166,511.07
9$156,431.94
10 $145,784.26
11 $134,535.97
12 $122,653.20
13 $110,100.15
14 $96,839.02
15 $82,829.83
16 $68,030.43
17 $52,396.21
18 $35,880.12
19 $18,432.38
20 $0.00
the loan from Sunset Park Company
M =
50,000
(
0.04875
______
12
)
(
1 +
0.04875
______
12
)
12t
_____________________
(
1 +
0.04875
______
12
)
12t – 1
y = –11,308.1x + 247,673.7
y = –307.3x2 – 5,161.2x + 228,208.5
M = 12t ∙
50,000
(
0.04875
______
12
)
(
1 +
0.04875
______
12
)
12t
_____________________
(
1 +
0.04875
______
12
)
12t – 1
– 50,000
or duplicated, or posted to a publicly accessible website, in whole or in part.
Name _____________________________________________________________ Date ________________________
Exercises
1. The summary portion of Manny Ramira’s credit card statement is shown. Determine the
New Balance amount.
Previous
SUMMARY
1,237.56
Balance Payments
/ Credits Transactions Late
Charge Finance
Charge New
Balance Minimum
Payment
$1,200.00 $2,560.67 $0.00 $9.56
Credit Card Statement
4-5
Name _____________________________________________________________ Date ________________________
or duplicated, or posted to a publicly accessible website, in whole or in part.
Use Shannon Houston’s credit card statement and the blank calendar for Exercises 6 – 11.
Previous
SUMMARY
$560.30
Balance Payments
/ Credits Transactions Late
Charge
Finance
Charge New
Balance Minimum
Payment
$25.00
TRANSACTIONS
9 Mar Gingham Pastry Shop
11 Mar Corner Clothes
DEBITS / CREDITS (⫺)
$27.68
$127.35
16 Mar Le Petite Menu
22 Mar Payment
$87.40
– $190.60
26 Mar Dutchess Pharmacy 57.30
Average
Daily # Days
in Billing APR Monthly
Periodic
Balance Cycle Rate
30
ACCOUNT INFORMATION
Account Number 16677289-02 Billing Date 6 Apr Payment Due 30 Apr
Total Credit Line
Total Available Credit
Credit Line for Cash
Available Credit for Cash
$ 5.000.00
$ 4,000.00
$ 4,000.00
4 Apr Elder’s Antiques $870.21
28 Mar Sparrow Jewelers $325.90
Shannon Houston 720 Timber Trail Dr
Indianapolis, IN
$0.00
15.6%
6. What amount should be in the box for Payment/Credits?
7. What amount should be in the box for Transactions?
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 26 27 28
29 30 31 1 2 3 4
56
$560.30
25
+87.40
$802.73 $802.73
+57.30
$669.43 $669.43
$995.33
+27.68
$587.98 $587.98 +127.35
$715.33 $715.33
$715.33 $715.33
$715.33 $802.73 $802.73 $802.73 $802.73
-190.60
$612.13 $612.13 $612.13 $612.13
+325.90
$995.33
$995.33$995.33$995.33$995.33
$995.33
+870.21
$1,865.54
$1,865.54 $1,865.54
$190.60