Deck 11: Consumer Credit and Mortgages

Question 1

Mini is financing an organ with a purchase price of $5,289. She plans to put 15% down and pay the rest in installments. How much will her down payment be?

Answer 1

$793.35;

Question 2

Mica bought a grandfather clock on installment with a down payment of $150 and 18 payments of $46.87. What is the installment price?

A) $693.66
B) $843.66
C) $993.66
D) $1,143.66

Answer 2

C

Question 3

Tony Lyons bought a new furnace for his house on installment with a $200 down payment. The installment price of the furnace is $4,050. If Tony paid 30 equal installments, how much was each payment?

Answer 3

$128.33;

Question 4

Mr. Sanchez bought a tool set for 12 monthly payments of $45.78 each and a total finance charge of $62.89 He paid the tool set off 4 months early. What is the final payment?

A) $222.53
B) $243.50
C) $251.56
D) $377.34

Question 5

Paul Hare had a previous balance of $216.54 on his clothing store credit card. He made purchases of $32.10 and a payment of $100. The interest charge was 2.1%. What is the new unpaid balance of Paul's credit card using the previous balance method?

A) $353.19
B) $279.89
C) $194.02
D) $153.19

Question 6

On May 1, the unpaid balance on a credit card is $132. During the month, purchases of $16.95, $82.64, and $5.35 are made. Using the previous balance method, what is the unpaid balance on June 1, if the finance charge is 1.9% of the unpaid balance and a payment of $90 is made May 12?

A) $114.57
B) $149.43
C) $171.84
D) $329.43

Question 7

What is the refund fraction on a 48-month loan paid off in 32 months?

A) $\frac { 68 } { 147 }$
B) $\frac { 17 } { 147 }$
C) $\frac { 32 } { 48 }$
D) $\frac { 16 } { 48 }$

Question 8

Becky bought a big screen TV on installment in 24 months and paid off the loan 4 months early. If Becky agreed to pay $210 in finance charges, what is the interest refund?

A) $70.00
B) $36.20
C) $25.20
D) $7.00

Question 9

The APR for Renee's charge account at Super Mart is 21%. Using the previous balance method, what are the finance charges on Renee's previous balance of $645.32?

A) $11.29
B) $13.55
C) $111.29
D) $135.52

Question 10

Fay and James purchased a living room set on installment with a $325 down payment and an installment price of $3,257. If Fay and James paid 36 equal installments, how much was each payment?

A) $90.47
B) $81.44
C) $77.49
D) $73.47

Question 11

Saheel has a charge card with a monthly rate of 1.4% on amounts up to $1,000 and 0.9% on amounts over $1,000. Saheel's previous balance was $1,421.51. He made a payment of $175, charged $423.89, and was issued a credit for $14.90. Using the previous balance method, what is his new balance?

Question 12

Kaylah has a charge card with a monthly rate of 1.7% on amounts up to $1,000 and 1.1% on amounts over $1,000. Kaylah's previous balance was $1,406.35. She made a payment of $250, charged $113.48, and was issued a credit for $129.63. Using the previous balance method, what is her new balance?

A) $1,920.93
B) $1,420.93
C) $1,307.45
D) $1,170.93

Question 13

Ping is going to purchase a truck on installment. His down payment is $1,300 with 48 payments of $290. The truck is priced at $12,990. What is the finance charge?

Question 14

On the 1st of the month, the beginning balance on Ashley's charge account was $1,299.34. A payment of $119 was made on the 14th of the month. Purchases of $67.50 were made on the 21st of the month. The charge account has a 31-day billing cycle with a monthly rate of 1.6%. Using the average daily balance method, what is the new balance?

Question 15

Luigi has a charge card at Willis' Auto Supplies with an APR of 15%. Luigi wants to calculate the finance charges on a previous balance of $319.67. Which statement is true?

A) He should multiply $319.67 by 0.015.
B) He should multiply $319.67 by 0.015 ÷12.
C) He should multiply $319.67 by 0.15.
D) He should multiply $319.67 by 15 ÷12.

Question 16

Hal Jacobsen purchased a lawn mower priced at $340 on an installment plan. Hal put 10% down and will pay the remaining balance in 12 monthly payments of $36 each. How much is Hal paying in finance charges?

A) $34
B) $92
C) $126
D) $138

Question 17

Winnie Polk can buy a car for $10,250. The dealer will give her $1,500 for her old car if she uses their financing option, and she can finance the rest with 36 monthly payments of $275. Winnie could also borrow the money from a bank for a total cost of $576.50. How much would Winnie save by borrowing from the bank instead of financing through the dealer?

Question 18

A sporting goods store offers a treadmill for $100 down and $78.50 a month for 30 months. What is the installment price?

Question 19

On the 1st of the month, beginning balance of Jacob's charge account is $298.50. A payment of $20 was made on the 15th of the month. It is a 30-day billing cycle. A charge of $45 was made on the 25th of the month. What is the average daily balance?

Question 20

Nina Jessup has an unpaid balance of $265 on her credit card with an interest rate of 1.8%. What is the interest charged on the account for the month?

Question 21

Gloria has a charge account at Taylor's Department Store with a current balance of $458.76. The finance charge is 1.5% on the unpaid balance. If Gloria makes a payment of $20 and additional purchases amounting to $35, what will be the amount of the ending balance?

Question 22

Ken's charge account has an APR of 18% and is on a 31-day billing cycle. On the 1st of the month, the beginning balance on Ken's charge account was $713.49. A payment of $87 was made on the 13th of the month. Purchases of $12.78 were made on the 23rd of the month. Using the average daily balance method, what is the new balance?

Question 23

The APR on a charge account is 13.8%. What is the monthly rate?

Question 24

Tyrone Brown is going to purchase a car on installment. His down payment is $1,575 with 36 payments of $327.80. The truck is priced at $12,000. What is the finance charge?

Question 25

The installment price is the total of the installments plus the _____________.

Question 26

Mrs. Wong bought a diamond necklace for 18 monthly payments of $88 each and a total finance charge of $164. She paid the necklace off 3 months early. What is the payoff amount?

Question 27

On January 1, the previous balance for Donna Small's charge account was $342.23. On the following days, she made the following purchases: January 12, $23.90 and January 20, $99.56. On January 15, Donna made a $60 payment. Using the average daily balance method, find the finance charge and unpaid balance on February 1 if the interest is 1.5% per month.

Question 28

What is the refund fraction on a 12-month loan paid off with 2 months remaining?

Question 29

A washer and dryer were purchased for 12 monthly payments of $147.50 each and a total finance charge of $395. How much is the interest refund after 8 payments? What is the payoff amount?

Question 30

Greta is going to buy a home entertainment center on installment with a down payment of $450 and 24 payments of $155. What is the installment price?

Question 31

Nancy purchased a Hawaiian vacation that she is paying off in installments. If she put $350 down and pays $115 a month for 9 months, what is the installment price?

Question 32

Aja has a charge card with a monthly rate of 1.5% on amounts up to $1,200 and 1% on amounts over $1,200. Her previous balance was $2,237.89. She made a payment of $210, and purchases of $164.25. Using the previous balance method, what is her new balance?

Question 33

The APR for Luke's charge account at Bernie's Hardware Store is 15.6%. Using the previous balance method, what are the finance charges on a previous balance of $388.46?

Question 34

A ski boat was purchased for 36 monthly payments of $135 each and a total finance charge of $349. How much is the interest refund after 12 payments? What is the payoff amount?

Question 35

In the refund fraction, the numerator is the sum of the digits of the _________ and the denominator is the sum of the digits of the __________.