Question 1

Able Long buys a new desk for $2,400. Able will pay back $250 per month. Monthly interest is 3% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Accepted Answer

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Question 2

Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What is his new monthly payment?

Accepted Answer

$204,000/1,000 = 204; 204 × $6.60 = $1,346.40.

Question 3

Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 1/2% for 36 months. What is his monthly payment?

Accepted Answer

The answer of Pete Frank bought a computer for $4,000....

Question 4

Neal Selznick bought a new van for $10,000. Neal put down $1,000 and paid $275 monthly for 40 months. What is the total amount of finance charge that Neal paid at the end of 40 months?

Accepted Answer

$275 × 40 - ($10,000 - $1,000)= $11,000 - $9,000 = $2,000.

Question 5

Jamie purchased a condo for $89,900 with a down payment of 20%; her credit terms were 5% for 15 years. What is Jamie's monthly payment?

Accepted Answer

The answer of Jamie purchased a condo for $89,900 with...

Question 6

Calculate the monthly payment:

Accepted Answer

The answer of Calculate the monthly payment:
 ...

Question 7

Calculate the finance charge:

Accepted Answer

The answer of Calculate the finance charge:
 ...

Question 8

Jennifer Rick buys a new typewriter for $590. Jennifer puts 20% down and will pay $70 a month for the next 10 months. What is (A) the amount of the loan, (B) the total amount of monthly payments, and (C) the total of the finance charge?

Accepted Answer

A. $590 - $118 = $472; B. 10 × $70 = $700; C. $700 - $472 = $228.

Question 9

Calculate APR by table from this advertisement:

Accepted Answer

The answer of Calculate APR by table from this advertisement:
...

Question 10

Mary Jones just received the following statement. Can you help her calculate (A) the average daily balance and (B) the finance charge?
  Finance charge is 1½% of average daily balance.

Accepted Answer

The answer of Mary Jones just received the following statement....

Question 11

Given a mortgage of $100,000 at 7% for 15 years, prepare a one-month amortization schedule. What is the balance after the first month's payment?

Accepted Answer

The answer of Given a mortgage of $100,000 at 7%...

Question 12

Mel Blanc bought a new dining room set for $6,600. Mel put down $1,000 and financed the balance at 12% for 36 months. What will his monthly payment be?

Accepted Answer

The answer of Mel Blanc bought a new dining room...

Question 13

Calculate the monthly payment:

Accepted Answer

The answer of Calculate the monthly payment:
 ...

Question 14

Earl Miller buys a new desk for $2,600. Miller will pay back $270 per month. Monthly interest is 5% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Accepted Answer

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Question 15

Jane Ranch bought a tractor for $5,000. Jane has decided that she can afford to pay only $1,000 per month. Can you calculate at the end of month 2 the balance of the loan outstanding? Use the U.S. Rule. The monthly interest charged is 5% on the unpaid balance.

Accepted Answer

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Question 16

Calculate APR:

Accepted Answer

The answer of Calculate APR:
 ...

Question 17

Calculate (A) the average daily balance and (B) the finance charge.
Finance charge is 2% of average daily balance.

Accepted Answer

The answer of Calculate (A) the average daily balance and...

Question 18

Shelley purchased a home in Maryland Heights, MO, for $204,000. Her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. What is Shelley's monthly payment and total finance charges?

Accepted Answer

The answer of Shelley purchased a home in Maryland Heights,...

Question 19

Calculate APR:

Accepted Answer

The answer of Calculate APR:
 ...

Question 20

Calculate (A) finance charge, (B) rebate, and (C) payoff.

Accepted Answer

The answer of Calculate (A) finance charge, (B) rebate, and...

Quiz 10: Installment Buying and Revolving Charge Credit Cards

Able Long buys a new desk for $2,400. Able will pay back $250 per month. Monthly interest is 3% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What is his new monthly payment?

Pete Frank bought a computer for $4,000. Pete put down $500 and financed the balance at 10 1/2% for 36 months. What is his monthly payment?

Neal Selznick bought a new van for $10,000. Neal put down $1,000 and paid $275 monthly for 40 months. What is the total amount of finance charge that Neal paid at the end of 40 months?

Jamie purchased a condo for $89,900 with a down payment of 20%; her credit terms were 5% for 15 years. What is Jamie's monthly payment?

Calculate the monthly payment:

Calculate the finance charge:

Jennifer Rick buys a new typewriter for $590. Jennifer puts 20% down and will pay $70 a month for the next 10 months. What is (A) the amount of the loan, (B) the total amount of monthly payments, and (C) the total of the finance charge?

Calculate APR by table from this advertisement:

Mary Jones just received the following statement. Can you help her calculate (A) the average daily balance and (B) the finance charge? Finance charge is 1½% of average daily balance.

Given a mortgage of $100,000 at 7% for 15 years, prepare a one-month amortization schedule. What is the balance after the first month's payment?

Mel Blanc bought a new dining room set for $6,600. Mel put down $1,000 and financed the balance at 12% for 36 months. What will his monthly payment be?

Calculate the monthly payment:

Earl Miller buys a new desk for $2,600. Miller will pay back $270 per month. Monthly interest is 5% on the unpaid balance. Calculate the balance outstanding after the second payment. (Use the U.S. Rule.)

Jane Ranch bought a tractor for $5,000. Jane has decided that she can afford to pay only $1,000 per month. Can you calculate at the end of month 2 the balance of the loan outstanding? Use the U.S. Rule. The monthly interest charged is 5% on the unpaid balance.

Calculate APR:

Calculate (A) the average daily balance and (B) the finance charge. Finance charge is 2% of average daily balance.

Shelley purchased a home in Maryland Heights, MO, for $204,000. Her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. What is Shelley's monthly payment and total finance charges?

Calculate APR:

Calculate (A) finance charge, (B) rebate, and (C) payoff.